WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine-hours, and the rate in the Fabrication Department is based on direct materials cost. At the beginning of the year, the company's management made the following estimates for the year:

Department

Preparation Fabrication

Machine hours 80 000 21 000

Direct Labour Hours 35 000 65 000

Direct Materials Cost $190 000 $400 000

Direct Labour Cost $280 000 $530 000

Manufacturing Overhead Cost $416 000 $720 000

Job 127 was started on April 1st and completed on May 12. The company's cost records show the following information concerning the job:

Department

Preparation Fabrication

Machine-hours 350 70

Direct labour-hours 80 130

Direct materials cost $940 $1,200

Direct labour cost $710 $980

Required:1.Compute the predetermined overhead rate used during the year in the Preparation Department. Compute the rate used in the Fabrication Department.(Round "Preparation department" answer to 2 decimal places.)

Predetermined Overhead Rate

Preparation department _________________ per machine-hour

Fabrication department _________________ % of materials cost

2.Compute the total overhead cost applied to Job 127.

Total Overhead cost _______________

3a).

What would be the total cost recorded for Job 127?

Woodgrain Technology

Preparation Fabrication

Direct Materials _________ __________

Direct Labour _________ __________

Manufacturing Overhead _________ __________

Total Cost _________ _________

3-b.If the job contained 25 units, what would be the unit product cost?(Round your answer to 2 decimal places.)

______________________

4.At the end of the year, the records of WoodGrain Technology revealed the followingactualcost and operating data for all jobs worked on during the year:

Department

Preparation Fabrication

Machine-hours 73,000 24,000

Direct labour-hours 30,000 68,000

Direct materials cost $165,000 $420,000

Manufacturing overhead cost $390,000 $740,000

What was the amount of underapplied or overapplied overhead in each department at the end of the year?

Under/over applied Price

Preparation Department ____________ __________

Fabrication Department _____________ ___________