High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job-order costing system in which 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’s management made the following estimates:      Department        Molding Painting   Direct labor-hours 39,500    51,200      Machine-hours 87,000    33,000      Direct materials cost $186,000    $196,000      Direct labor cost $277,000    $513,000      Fixed manufacturing overhead cost $243,600    $465,920      Variable manufacturing overhead per machine-hour $2.60    –         Variable manufacturing overhead per direct labor-hour –       $4.60              Job 205 was started on August 1 and completed on August 10. The company’s cost records show the following information concerning the job:         Department        Molding Painting   Direct labor-hours 81      132        Machine-hours 370      67        Materials placed into production $944      $1,260        Direct labor cost $690      $960            Required: 1. Compute the predetermined overhead rate used during the year in the Molding Department. Compute the rate used in the Painting Department. (Round your answers to 2 decimal places.)                   2. Compute the total overhead cost applied to Job 205. (Round “Predetermined overhead rate” to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)                   3-a. What would be the total cost recorded for Job 205? (Round “Predetermined overhead rate” to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)                   3-b. If the job contained 29 units, what would be the unit product cost? (Round “Predetermined overhead rate” and final answer to 2 decimal places and other intermediate calculations to the nearest dollar amount.)

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High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job-order costing system in which 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’s management made the following estimates:

 

   Department
   
   Molding Painting
  Direct labor-hours 39,500    51,200   
  Machine-hours 87,000    33,000   
  Direct materials cost $186,000    $196,000   
  Direct labor cost $277,000    $513,000   
  Fixed manufacturing overhead cost $243,600    $465,920   
  Variable manufacturing overhead per machine-hour $2.60    –      
  Variable manufacturing overhead per direct labor-hour –       $4.60   
 

   

    Job 205 was started on August 1 and completed on August 10. The company’s cost records
show the following information concerning the job:

    

   Department
   
   Molding Painting
  Direct labor-hours 81      132     
  Machine-hours 370      67     
  Materials placed into production $944      $1,260     
  Direct labor cost $690      $960     
 

   

Required:
1.

Compute the predetermined overhead rate used during the year in the Molding Department. Compute the rate used in the Painting Department. (Round your answers to 2 decimal places.)
   

         

 

 

2.

Compute the total overhead cost applied to Job 205. (Round “Predetermined overhead rate” to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)
   

         

 

 

3-a.

What would be the total cost recorded for Job 205? (Round “Predetermined overhead rate” to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)
   

         

 

 

3-b.

If the job contained 29 units, what would be the unit product cost? (Round “Predetermined overhead rate” and final answer to 2 decimal places and other intermediate calculations to the nearest dollar amount.)
   

         

 

 

4.

At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year:

  

   Department
   
   Molding Painting
  Direct labor-hours 32,000      56,000     
  Machine-hours 86,800      25,000     
  Direct materials cost $167,600      $414,000     
  Direct labor cost $108,000      $436,000     
  Manufacturing overhead cost $479,320      $731,200     
 

 

 

What was the amount of underapplied or overapplied overhead in each department at the end of the year? (Round “Predetermined overhead rate” to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount. Select “None” for no effect (i.e., zero variance).)