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: Department Molding Painting 38,000 88,000 $220,000 $493,120 $ 3.00 Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 53,600 5.00 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following informetion concerning the job: Department MoldingPainting 77 Direct labor-hours Machine-hours Direct materials Direct labor cost 125 320 74 $ 950 $1, 280 $ 740 $1,000 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 36 units, what would be the unit product cost? Complete this question by entering your answers in the tabs below. Reg 3A Reg 38 Reg 2 Req 1 Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round your answers to 2 decimal places.) Predetermined Overhead Rate per MH Molding Department per DLH Painting Department

Answer 1

Ans. 1. Compute predetermine over head rate for B Holding department. fixed predetermine oller head rate : fixed Manufacturing over head coit - Machine hours = 220000 88000 $2.50 per reachine hour. predetermine over head rate fixed overhead rate & Variable overhead rate. $2.50 +$3.00 -$5.50 per machine hour. Compute predetermined over head rate for painting department. Fixed predetermined ollerhead rate = Fixed Manufacturing overhead Cost - Direct labour hours . 493120 53600 = $9.29 perdirect labor hour

predetermined Oller head rate : fixed over head rate + Variable overhead rate . : $9.20 +$5.00 =1$14.20 per direct labour hour. . - predetermined over head rate for Moeding department is $5.50 and painting, de prot ment is $14.209) . & calculate. Total Over head cost applied to Job 205. Calcutate totul over head particulars cost applicd To Job 205 I Amount $ 1760 holding department L (320X 5.59) painting department - (125x14920) Total over head $1775 $3535 L Cold Goff applied to Total overhead Job 205. is $ 3535

3a). Calculate Total Manakacturing Cost for Job 205. Calculate fortal olanufecturing cost for Job 205 Particulars Department ats ocobling painting Amout Direit plate $950 $1280 $2230 $1000 $1740 I la bour / $ 740 Manufacturing $1760 $1775 $3535 over head Peanufacta $ 3450 $4055 $7505 Total Cost Total Manufacturing cost for Job 205 is $75051 36) Calceclate anif product Costa anif product Cost a hot Total Manufacturing cost . Tateel Units Ć $7505 36 = $208.47 Anit product Cost is $208.47 |