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White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:rtment Cutting Finishing Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 83,000 3,400 S 390,000 572,000 6,100 55,800 $ 3.00 $3.75 Required 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Finishing Direct labor-hours Machine-hours Direct materials Direct labor cost 90 740 S 96 $360 $264 203 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given belovw Required 1 Required 2Required 3 Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.) Department Cutting Finishing Predetermined overhead rate per MH per DLHComplete the question by entering your answers in the tabs given below. Required 1Required 2 ERequired3 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. (Round intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total manufacturing cost Required 1 Required 3>

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Answer #1
1
Predetermined overhead rate:
Cutting 9.99 per MH =3+(390000/55800)
Finishing 10.64 per DLH =3.75+(572000/83000)
2
Direct materials 1100 =740+360
Direct labor cost 360 =96+264
Overhead applied 1016 =(90*9.99)+(11*10.64)
Total manufacturing cost 2476
3
Yes, the amounts of overhead cost would be substantially different
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