Help Save Exit Submit High Desert Potteryworks makes a varie

Help Save &Exit; Submit 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 Check my lding Pa Direct Labor-hours Machipe-hours Pixed manufacturing overhead cost Variable mapufacturing overhead per machine-hour Variable manufacturing overhead per direct Labor-hour 32,00055,200 4,000 39,000 235, 200 $546,480 2.40 4.40 Job 205 was started on August 1 and completed on August t0. The company\'s the job: cost records show the following information concerning Departnent HoldingPainting Direct labor-hours Hachine-hours Direct materials 130 72 948 $1,140 $ 710 51,000 380 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 26 units, what would be the unit product cost? Complete this question by entering your answers in the tabs below. 3A Reg 38 Req 1 Req 2

Solution

1 Predetermined overhead rate Molding Department Fixed manufacturing overhead cost (235,200/84000)= 2.8 Variable manufacturing overhead rate per machine hour 2.4 Predetermined overhead rate 5.2 per MH\'s Painting Department Fixed manufacturing overhead cost (546,480/55200)= 9.9 Variable manufacturing overhead rate per machine hour 4.4 Predetermined overhead rate 14.3 per DLH 2) total overhead cost applied ot job 205 Molding painting total Molding (380*5.2)= 1976 1976 Painting (130*14.3) 1859 1859 total 1976 1859 3835 total overhead cost applied to job 205   $3,835 3-a) total manufacturing cost Molding painting total Direct materials 948 1,140 2088 Direct labor cost 710 1,000 1710 overhead cost applied 1976 1859 3835 total 3634 3,999 7633 total manufacturing cost $7,633 3-b) unit product cost = 7633/26 293.58