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 Direct labor-hours Machine-hours Molding 36,000 84,000 Painting 59,700 32,000 Fixed manufacturing overhead cost $ 507,450 $ 201,600 $ 3.00 Variable manufacturing overhead per nachine-hour Variable manufacturing overbead per direct labor-hour $ 5.00 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 Painting Direct labor-hours Machine-hours Molding 83 370 $ 942 720 128 74 Direct materials $1,260 $ 960 Direct labor cost $ 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. Required 1 Required 2 Required 3A Required 38 Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round your answers to 2 decimal places.)
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 Direct labor-hours Machine-hours Molding 36,000 84,000 Painting 59,700 32,000 Fixed manufacturing overhead cost $ 507,450 $ 201,600 $ 3.00 Variable manufacturing overhead per nachine-hour Variable manufacturing overbead per direct labor-hour $ 5.00 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 Painting Direct labor-hours Machine-hours Molding 83 370 $ 942 720 128 74 Direct materials $1,260 $ 960 Direct labor cost $ 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. Required 1 Required 2 Required 3A Required 38 Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round your answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
Direct labor-hours
Machine-hours
36,000
84,000
59,700
32,000
Fixed manufacturing overhead cost
$ 507,450
$ 201,600
$ 3.00
Variable manufacturing overhead per nachine-hour
Variable manufacturing overhead per direct labor-hour
$5.00
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
Direct labor-hours
Machine-hours
Molding
83
370
$ 942
$ 720
Painting
128
74
Direct materials
Direct labor cost
$1,260
$ 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 36 units, what would be the unit product cost?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2 Required 3A Required 38
Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round your
answers to 2 decimal places.)
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