Question: Answer Saved Help opens in a new window Item 3 2 points Print Item 3 Item 3 2 points Item Skipped High Desert Potteryworks makes
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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:
| Department | |||||||
| Molding | Painting | ||||||
| Direct labor-hours | 31,000 | 56,000 | |||||
| Machine-hours | 83,000 | 33,000 | |||||
| Fixed manufacturing overhead cost | $ | 190,900 | $ | 520,800 | |||
| Variable manufacturing overhead per machine-hour | $ | 3.00 | - | ||||
| Variable manufacturing overhead per direct labor-hour | - | $ | 5.00 | ||||
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 | 84 | 130 | |||||
| Machine-hours | 400 | 67 | |||||
| Direct materials | $ | 938 | $ | 1,140 | |||
| Direct labor cost | $ | 750 | $ | 970 | |||
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?
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