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 32,000 58, 100 81,000 38,000 $202,500 $563, 570 S 2.60 S 4.60 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Direct labor-hours Machine-hours Direct materials Direct labor cost Department MoldingPainting 83 128 350 73 $ 942 $1,140 $ 700 $ 960 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 38 units, what would be the unit product cost? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req ЗА Reg 3B Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.)

Answer 1

machine hour - Ceren question & Pre determined rode Overhead rate in molding dept is based on and painting dept is based on direct la bour hour. Calculation rate used Pre determined overhead in modeling Painting dept Webt (machine hour) ( 이 413100 Slooo Lesso 1830836 58100 Predetermined overhead rate tolal Estimated manufaclaring Overhead total Estimated machine how (direct labour hair) en cas of (Painting Refer W.1) or 2 $5:1 $ 14.3 OP

Calculation of total overhead cose applied to Job 205 Web Particular molding painting + 1785 1830 total overhead cost variable [including {$51x350) [8143 X128 and fixed Alternative) - Kolution of variable cost and fixed cost shown separatet molding painting Variable overhead cost → 910 [ 2-64 350) 589 (4.6X128) 875 1241 fixed overhead 2 cost- (studa]*3 (25:1-2-6]x350 ] [643-46 X128 total 1785 1830 Overhead cost

Calculation 3 000 of total manopisturing Cost Parltcular molding $ 942 Direch material Direct labour painting $ 1140 960 589 700 910 variable oreshead Cost 875 124) freed overhead cost 3422 3930 total manufacturing cost 1422 b) the Job Contained 38 cenits then und product cost molding Painting $3930 total manufacturing Cost no of censt ant product $ 90 $103 cost 38 38