Exercise $2-15($Static$)$ Departmental Predetermined Overhead Rates $[$LO$2-1,$ LO$2-2,$ LO$2-4]$ White Company has two departments, Cutting and Finishing. The company uses job$-$order costing and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine$-$hours, and the Finishing Department bases its rate on direct labor$-$hours. At the beginning of the year, the company made the following estimates: $$DepartmentCuttingFinishingDirect labor$-$hours$6,00030,000$Machine$-$hours$48,0005,000$Total fixed manufacturing overhead cost$ $264,000$$ $366,000$Variable manufacturing overhead per machine$-$hour$ $2\mathrm{.}000$Variable manufacturing overhead per direct labor$-$hour$0$$ $4\mathrm{.}00$ Required: Compute the predetermined overhead rate for each department. The job cost sheet for Job $203,$ which was started and completed during the year, showed the following: $$DepartmentCuttingFinishingDirect labor$-$hours$620$Machine$-$hours$804$Direct materials$ $500$$ $310$Direct labor cost$ $108$$ $360$ Using the predetermined overhead rates you computed in requirement $(1),$ compute the total manufacturing cost assigned to Job $203.$ Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor$-$hours, rather than using departmental rates?