How do you calculate predetermined overhead rate $.$ 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

Painting

$52,600$

$34,000$

$ $499,700$

$ $4\mathrm{.}60$

Job $205$ was started on August $1$ and completed on August $10.$ The company's cost records show the following information concerning

the job:

Direct labor$-$hours

Machine$-$hours

Fixed manufacturing overhead cost

Variable manufacturing overhead per machine$-$hour

Variable manufacturing overhead per direct labor$-$hour

Molding

$36,000$

$82,000$

$ $196,800$

$ $2\mathrm{.}60$

$0$

Direct labor$-$hours

Machine$-$hours

Direct materials

Direct labor cost

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 $36$ units, what would be the unit product cost?

Painting

$128$

$ $1,200$

$ $1,010$

Department

Molding

$89$

$360$

$ $944$

$ $680$

$67$