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White Company has two departments, Cutting and Finishing. The company uses job-order costing 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 80 $ 750 $95 Finishing Predetermined overhead rate 11 5 $ 370 $ 209 Cutting Required 1 Required 2 Required 3 Compute the predetermined overhead rate for each department. Note: Round your answers to 2 decimal places. Department 6,600 58,500 $ 400,000 $ 4.00 0 Complete this question by entering your answers in the tabs given below. Cutting Department per MH Using the predetermined overhead rates you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 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 83,000 1,100 $ 471,000 0 $3.75 Finishing Department per DLH

White Company has two departments, Cutting and Finishing. The company uses job-order costing 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 80 $ 750 $95 Finishing Predetermined overhead rate 11 5 $ 370 $ 209 Cutting Required 1 Required 2 Required 3 Compute the predetermined overhead rate for each department. Note: Round your answers to 2 decimal places. Department 6,600 58,500 $ 400,000 $ 4.00 0 Complete this question by entering your answers in the tabs given below. Cutting Department per MH Using the predetermined overhead rates you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 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 83,000 1,100 $ 471,000 0 $3.75 Finishing Department per DLH

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4E: The cost accountant for River Rock Beverage Co. estimated that total factory overhead cost for the...
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White Company has two departments, Cutting and Finishing. The company uses job-order costing 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 Required 1 Required 2 Required 3 5 80 $ 750 $ 95 Finishing Predetermined overhead rate 11 5 $ 370 $ 209 Complete this question by entering your answers in the tabs given below. Cutting 6,600 58,500 $ 400,000 $ 4.00 0 Using the predetermined overhead rates you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. Compute the predetermined overhead rate for each department. Note: Round your answers to 2 decimal places. Department 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? Cutting Department per MH Finishing 83,000 1,100 $ 471,000 0 $3.75 Finishing Department per DLH
Transcribed Image Text:White Company has two departments, Cutting and Finishing. The company uses job-order costing 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 Required 1 Required 2 Required 3 5 80 $ 750 $ 95 Finishing Predetermined overhead rate 11 5 $ 370 $ 209 Complete this question by entering your answers in the tabs given below. Cutting 6,600 58,500 $ 400,000 $ 4.00 0 Using the predetermined overhead rates you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. Compute the predetermined overhead rate for each department. Note: Round your answers to 2 decimal places. Department 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? Cutting Department per MH Finishing 83,000 1,100 $ 471,000 0 $3.75 Finishing Department per DLH
Required 1 Required 2 Required 3 Using the predetermined overhead rates you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. Note: Round your intermediate calculations and final answer to 2 decimal places. Total manufacturing cost Required 1 Required 2 Required 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?
Transcribed Image Text:Required 1 Required 2 Required 3 Using the predetermined overhead rates you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. Note: Round your intermediate calculations and final answer to 2 decimal places. Total manufacturing cost Required 1 Required 2 Required 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?
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