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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 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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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es 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.) < Prev 3 of 5 ⠀⠀⠀ Next >
Transcribed Image Text:es 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.) < Prev 3 of 5 ⠀⠀⠀ Next >
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