Question: Help me answer this please 11 White Company has two departments: cutting and finishing. The company uses a job-order costing system and computes a predetermined

 Help me answer this please 11 White Company has two departments:cutting and finishing. The company uses a job-order costing system and computes

Help me answer this please

a predetermined overhead rate in each department. The cutting department bases itsrate on machine-hours, and the finishing department bases its rate on direct

11 White Company has two departments: cutting and finishing. The company uses a job-order costing system 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 labour cost. At the beginning of the year, the company made the following estimates: Department 8.33 Cutting Finishing Direct labour-hours 6, 100 34, 100 points Machine-hours 47, 750 4, 100 Manufacturing overhead cost $458, 400 $535, 500 8 02:45:16 Direct labour cost $ 61, 000 $297, 500 Required: 1. Compute the predetermined overhead rate to be used in each department. (Round your answers to 2 decimal places.) Department Cutting Finishing Predetermined overhead rate per MH % of DLC11 2. Assume that the overhead rates that you computed in Requirement (1) are in effect. The job cost sheet for job 203, which was started and completed during the year, showed the following: Department Cutting Finishing 8.33 Direct labour-hours 8 25 points Machine-hours 75 5 Materials requisitioned $500 $310 Direct labour cost $ 88 $161 02:45:04 Compute the total overhead cost applied to job 203. (Do not round intermediate calculations and round your answer to 2 decimal places.) Total overhead cost applied 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide overhead rate based on direct labour cost, rather than using departmental rates? O Yes O No

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!