c. Net income PROBLEM 3-8 PROBLEMA Preparing LOW-CC cel Using Multiple Departments; Applying Overhead [LO2- CC4; LO3 - CCS; LO7 - CC141 High Desert Potteryworks makes a variety of pottery products that it sells to retailers, such as Home 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 moulding department is busca on machine-hours, and the rate in the painting department is based on direct labour cost. At the beginning the year, the company's management made the following estimates: Depo Almeda ano Department D Direct labour-hours Machine-hours Direct materials cost Direct labour cost Manufacturing overhead cost Moulding 12,000 70,000 $510,000 $130,000 $518,000 Painting 60.000 8,000 $650,000 $420,000 $798,000