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: points Department Molding Painting 31.500 52,800 88,000 39,000 $220,000 $485, 760 $ 3.00 - $ 5.00 Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour eBook Print Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: References Direct labor-hours Machine-hours Direct materials Direct labor cost Department MoldingPainting 73131 390 69 $ 936 $1,240 $ 720 $ 970 Required: 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 2. Compute the total overhead cost applied to Job 205. 3-a, What would be the total manufacturing cost recorded for Job 205? 3-b. If the job contained 28 units, what would be the unit product cost? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req2 Req3A Req 3A Req 3B Req 38 Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round your answers to 2 decimal places.) Predetermined Overhead Rate Molding Department per MH Painting Department per DLH ( Reqi Req2 >

Answer 1

1
Predetermined overhead rate
Molding Department	5.50	per MH	=3+(220000/88000)
Painting Department	14.20	per DLH	=5+(485760/52800)
2
Molding Department	2145		=390*5.50
Painting Department	1860		=131*14.20
Total overhead cost	4005
3
	Department
	Molding	Painting	Total
Direct materials	936	1240	2176
Direct labor	720	970	1690
Manufacturing overhead	2145	1860	4005
Total cost	3801	4070	7871
4
Total cost	7871
Divide by Units	28
Unit product cost	281.11	per unit