Question

High Desert Potterworks 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 38,00 55,300 81,00 34,eee $170,100 $492,178 $ 2.80 - $ 4.89 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following Information concerning the job: 73 Direct labor-hours Machine-hours Direct materials Direct labor cost Department Molding Painting 127 379 $ 948 $1,280 $ 749 $ 990

Answer 1

- Predetermined Molding Department Overhead Rate 4. go Рел МН Painting Depoortment 13.70 Per DLH Total Overhead cost $3553 1 calculation : MOLDING DE PARTMENTS I Estimated fixed manufacturing overhead & 170,100 Estimated variable manufactwing overheads $ 2.80 x 81,000 MHS $ 226,800 Estimated total manufacturing overhead cost $396,900 Estimated total manufacturing overhead. & Estimated total machine - hours Predetermined overhead rate # 396,900 $1,000 MHS 1 & 4. go permy &492, 170 PAINTING DEPARTMENT: Estimated fixed manufacturing overhead Estimated variable manufacturing overhead: $4,80 per DLH 55,300 DLHS Estimated total manufactuung overhead cost $ 265,440 $ 757,610 Estimated total manufacturing overhead - Estimated total DLHS Puedetermined overhead rate $ 757,610 55,300 DLHS $ 13.70 per DLA

#1,813 Molding Department overhead applied: 370 machine-hours x $ 4.90per machine-hour Painting Department overrhead applied: 127 direct labor-hours X $ 13. Toper DLH Total overhead cost $1,739.9 $3,553