White Company has two departments, Cutting and Finishing. The company uses job-order costing and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its ate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Cutting 6,900 55,900 Finishing 78,000 3,000 Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $ 380,000 $ 4.00 $ 556,000 0 0 $3.75 Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Direct labor-hours Machine-hours Direct materials Direct labor cost Department Cutting Finishing 4 90 14 3 $ 360 $ 322 $ 750 $ 92 Using the predetermined overhead rates you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete this question hy entering your answers in the tahs given below. < Prev 10 of 12 Next >