Check my work High Desert Potteryworks makes a variety of po

Check my work 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 sanufacturing overhead cost Varlable nanufacturing overhead per machine hour Variable nanufacturing overhead per direct labor-hour 4,99855,00 88,00032,800 228,800 $473,860 3.0 $ 5.00 ob 205 was started on August 1 and completed on August 10. the job lob 205 was started on August 1 and completed on August 1o The company\'s cost records show the following information concerning records show t Direct Labor-hours Machine-hours Direct saterials Direct Jabor cost 127 74 934 $1,140 72@ $ 160 90

Solution

1. Molding Department: = $228,000/$88,000 MHs = $2.59 per MH

Painting Department = $580,000/275,500 direct labor cost = 210% direct labor cost

2.

3.

If, the job contained 38 units, product cost will be $934 * 38units = $35,492 in Molding, and $1140 * 38units = $43320 in Painting.

	Overhead Applied
Molding Department: 390MHs x $2.59 per MH	1010
Painting Department: $960 x 210%	2016
Total Overhead Cost Applied	3026