Question

High Desert Potteryworks 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 manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor- hours. At the beginning of the year, the company provided the following estimates: Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Molding Painting 36,500 55,600 84,00 37. $218.400 5489.28 $ 3.ee 5.ee Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Department Molding Painting 133 Direct labor-hours Machine hours Direct materials Direct labor cost 38e $942 51.260 $ 730 5930

Answer 1

Answer
Req 1.
Molding OH rate per MH:
Variable OH rate per MH		3
Fixed OH rate (218400/84000)		2.6
Oh rate per MH		5.6
painting OH rate per DLH
Variable OH per DLH		5
Fixed OH rate (489280/55600)		8.8
Oh rate per DLH		13.8
Rreq 2.
MH used in Job 205 f Molding		380
DLH used in Job 205 of painting		133
Molding OH rate per MH'		2128
painting OH rate per DLH		$1,835.40
OH applied to Job 205		$3,963.40
Req 3.
Total cost of Job 205
	Molding	Painting	Total
Material cost	$   942.00	$1,260.00	$2,202.00
Labour cost	$   730.00	$   980.00	$1,710.00
OH cost	$2,128.00	$1,835.40	$3,963.40
Total cost	$3,800.00	$4,075.40	$7,875.40
Req 4.
Total Manufacturing cost of Job 205			$7,875.40
Divide: Number of units			$     34.00
Cost per unit			$   231.63