Question

please answer soon!

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 57,800 83,000 34,000 $190,900 $566,440 $ 2.40 - - $ 4.40 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 MoldingPainting 76 130 320 $ 946 $1. 180 $ 710 $1.010 Direct labor-hours Machine-hours Direct materials Direct labor cost 66 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 23 units, what would be the unit product cost?

Answer 1

1) Molding= Estimated total manufacturing overhead cost/Estimated total machine hours+Variable manufacturing overhead per machine hour

= $190900/83000+$2.40= $4.70 per MH

Painting= Estimated total manufacturing overhead cost/Estimated total labor hours+Variable manufacturing overhead per direct labor hour

= $566440/57800+$4.40= $14.20 per DLH

2) Total overhead cost= 320*$4.70+130*$14.20= $3350

3)

	Department
	Molding	Painting	Total
Direct materials	$946	$1180	$2126
Direct labor	710	1010	1720
Manufacturing overhead	(320*$4.70)= 1504	(130*$14.20)= 1846	3350
Total cost	$3160	$4036	$7196

4) Unit product cost= Total cost/Number of units

= $7196/23= $312.87 per unit