Do not give solution in image format White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes apredetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the FinishingDepartment bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:Direct labor-hoursMachine-hoursTotal fixed manufacturing overhead cost.Variable manufacturing overhead per machine-hourVariable manufacturing overhead per direct labor-hour.Direct labor-hoursMachine-hoursDirect materialsDirect labor costRequired:1 Compute the predetermined overhead rate for each department.2. The job cost sheet for Job 203, which was started and completed during the year, showed the following:DepartmentCutting585$ 740$ 100Finishing174Predetermined overhead rate$ 390$ 340Required 3DepartmentUsing the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job203.Cutting8,60063,500$ 390,000$ 3.003. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwidepredetermined overhead rate based on direct labor-hours, rather than using departmental rates?Finishing82,0003,100$ 436,000$ 2.75Complete the question by entering your answers in the tabs given below.Required 1 Required 2Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.)Cutting DepartmentFinishing Department i$ 9.14 per MH8.07 per DLHRequired 2 >Redd runisS White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes apredetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the FinishingDepartment bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:DepartmentDirect labor-hoursMachine-hoursTotal fixed manufacturing overhead costVariable manufacturing overhead per machine-hourVariable manufacturing overhead per direct labor-hourDirect labor-hoursMachine-hoursDirect materialsDirect labor costCutting585$ 740$ 100Required:1. Compute the predetermined overhead rate for each department.2. The job cost sheet for Job 203, which was started and completed during the year, showed the following:DepartmentFinishing174$ 390$ 340Cutting8,60063,500$ 390,000$ 3.00Finishing82,0003,100$ 436,000Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Jo203.Complete the question by entering your answers in the tabs given below.$ 2.753. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwidepredetermined overhead rate based on direct labor-hours, rather than using departmental rates?< Required 1Required 1 Required 2 Required 3Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing costassigned to Job 203. (Round your intermediate calculations and final answer to 2 decimal places.)Total manufacturing costRequired 3 >

Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead cost to cost…

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Direct labor-hours Machine-hours Direct materials Direct labor cost Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting 5 85 $740 $ 100 Predetermined overhead rate Finishing 17 4 $ 390 $ 340 Required 3 Department Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. Cutting 8,600 63,500 $ 390,000 $ 3.00 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Finishing 82,000 3,100 $ 436,000 $ 2.75 Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.) Cutting Department Finishing Department. $ 9.14 per MH 8.07 per DLH Required 2 > Redd (unit) S

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q