Mid Term Exam Chapters 12 3 57 and 8 6 6 overhead rates are

Mid Term Exam (Chapters 1,2, 3, 5,7 and 8) 6 6: 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: 34,000 51,000 87,000 30,000 $191,400 $448,800 4.80 Job 205 was started on August 1 and completed on August 10. The company\'s cost records show the following information concerning the job: 134 68 932 $1,100 s 710 980 75 320 Direct 1 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 31 units, what would be the unit product cost? Complete this question by entering your answers in the tabs below

Solution

Req 1:

Req 2:

Req 3:

Req 3B:

Overhead applied	Molding	Painting	Total
a	Cost base	1,91,400	4,48,800
b	Estimated direct labor hours		51,000
b	Estimated machine hours	87,000
c= a/b	Overhead rate per hour	2.20	8.80