Question

3 s makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply m predetermined overhead rate in the Molding Department is based on m based on direct labor-hours. At the beginning of the year, the company provided the following estimates anufacturing overhead cost to jobs. The achine-hours, and the rate in the Painting Department is 39,00051,500 83,00037,000 $232,400 $478,950 $ 4.60 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: 310 $ 944 $1,100 Direct materials cost applied to Job 205. cost r d for Job 205? 3-a. What would be the total < Prex3 of 5 Next >

Answer 1

Req 1.
OH rate of Molding:
Variable OH rate per MH				2.6
Fixed OH rate per MH
Fixed Oh			232400
Divide: Total MH			83000	2.8
OH rate of Molding per MH				5.4
Oh rate of Painting:
Variable Oh rate per DLH				4.6
Fixed OH rate per DLH
Fixed OH rate per DLH			478950
Divide: Total DLH			51500	9.3
OH rate of Painting per DLH				13.9
Req 2.
Oh applied to Job 205
MH used of Molding			310
Oh rate per MH			5.4
OH applied in Molding Deptt				1674
DLH used of Painting			129
OH rate per DLH			13.9
Oh applied in Painting depp=tt				1793.1
Oh applied in Job 205				3467.1
Req 3.
Total manufacturing cost
			Molding	Painting	Total
Mateerial cost			944	1100	2044
labour Cost			740	960	1700
Oh cost applied			1674	1793.1	3467.1
Total manufacturing cost			3358	3853.1	7211.1
Req 3-b:
Total Manufacturing cost			7211.1
Divide: Units produced			39
Unit product cost			184.9