Required 1 Required 2 Required 3A Required 3B If the job contained 27 units, what would be the unit product cost? (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations to the nearest dollar amount. Round your final answer to 2 decimal places.) Unit product cost $ 272.13 per unit < Required 3A Required 3B 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 30,500 88,000 $ 237,600 $ 3.00 Painting 59,800 40,000 $ 544,180 $ 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: Direct labor-hours Machine-hours Direct materials Direct labor cost Required: Department Molding 82 330 Painting 125 74 $ 934 $ 690 $ 1,120 $ 960 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 27 units, what would be the unit product cost?
Required 1 Required 2 Required 3A Required 3B If the job contained 27 units, what would be the unit product cost? (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations to the nearest dollar amount. Round your final answer to 2 decimal places.) Unit product cost $ 272.13 per unit < Required 3A Required 3B 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 30,500 88,000 $ 237,600 $ 3.00 Painting 59,800 40,000 $ 544,180 $ 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: Direct labor-hours Machine-hours Direct materials Direct labor cost Required: Department Molding 82 330 Painting 125 74 $ 934 $ 690 $ 1,120 $ 960 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 27 units, what would be the unit product cost?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can’t figure out unit product cost
Transcribed Image Text:Required 1
Required 2
Required 3A
Required 3B
If the job contained 27 units, what would be the unit product cost? (Round "Predetermined overhead rate" to 2 decimal
places. Round other intermediate calculations to the nearest dollar amount. Round your final answer to 2 decimal places.)
Unit product cost
$ 272.13 per unit
< Required 3A
Required 3B
Transcribed Image Text: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
30,500
88,000
$ 237,600
$ 3.00
Painting
59,800
40,000
$ 544,180
$ 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:
Direct labor-hours
Machine-hours
Direct materials
Direct labor cost
Required:
Department
Molding
82
330
Painting
125
74
$ 934
$ 690
$ 1,120
$ 960
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 27 units, what would be the unit product cost?
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