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 labor-hours. At the beginning of the year, the companys management made the following estimates for the year:

	Department
	Preparation				Fabrication
Machine-hours		80,000				40,000
Direct labor-hours		33,000				50,100
Direct materials cost	$	192,000			$	202,000
Direct labor cost	$	271,000			$	513,000
Fixed manufacturing overhead cost	$	232,000			$	470,940
Variable manufacturing overhead per machine-hour	$	2.40				-
Variable manufacturing overhead per direct labor-hour		-			$	4.40

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

	Department
	Preparation					Fabrication
Machine-hours		370				69
Direct labor-hours		75				135
Direct materials cost	$	938			$	1,240
Direct labor cost	$	740			$	980

Requred:

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

Preperation department: Per MH

Fabrication department: Per DLH

2. Compute the total overhead cost applied to Job 127. (Round predetermined overhead rate to 2 decimal places and round your final answer to nearest whole dollar.)

Total overhead cost:

3-a. What would be the total cost recorded for Job 127? (Round your predetermined overhead rate and intermediate calculations to 2 decimal places and round your final answer to nearest whole dollar.)

Department

Preparation Fabrication Total

Direct materials

Direct labor

Manufacturing overhead

Total cost

3-b. If the job contained 34 units, what would be the unit product cost? (Round predetermined overhead rate and final answer to 2 decimal places.)

unit product cost:

4. At the end of the year, the records of WoodGrain Technology revealed the following actual cost and operating data for all jobs worked on during the year: (Round predetermined overhead rate to 2 decimal places.)

	Department
	Preparation				Fabrication
Machine-hours		79,800				24,600
Direct labor-hours		26,000				59,000
Direct materials cost	$	168,200			$	411,000
Manufacturing overhead cost	$	432,740			$	777,600

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

Preperation department:

Fabrication department: