Magnolia Fabricators produces a varied product line in a highly automated facility without the use of direct labor. A large number of bulky materials are used, and weight-related material handling costs are high. Some jobs use much bulky material and little machine time, and others use the opposite mix. Because no single base for a predetermined overhead rate provides management with reliable product cost information, factory overhead is classified into two cost pools, and two predetermined overhead rates are used. For the year 20A, it is estimated that total factory overhead costs will consists of $600,000 of overhead related to materials and $900,000 of overhead related to machine usage. Total machine usage is expected to be 3,600 hours for the year, and the total weight of materials used is expected to be 300 tons.
Job 103, which was completed early in the year 20A, required 70 hours of machine time and four tons of materials with a direct material cost of $22,000.
Required:
(1) Calculate the predetermined overhead rates for the year 20A.
(2) Prepare a completed job cost sheet for Job 103.