Problem 3-19 (Algo) Multiple Predetermined Overhead Rates; Applying Overhead [LO3-1, LO3-2, LO3-4]

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		39,000			58,800
Machine-hours		89,000			32,000
Fixed manufacturing overhead cost	$	213,600		$	564,480
Variable manufacturing overhead per machine-hour	$	2.60			-
Variable manufacturing overhead per direct labor-hour		-		$	4.60

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

	Department
	Molding			Painting
Direct labor-hours		89			133
Machine-hours		350			73
Direct materials	$	938		$	1,180
Direct labor cost	$	690		$	990

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 28 units, what would be the unit product cost?

1 -

Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round your answers to 2 decimal places.)

Predetermined Overhead Rate
Molding Department		per MH
Painting Department		per DLH

2 -

Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.)

Total overhead cost

$1

3 A -

What would be the total manufacturing cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.)

	Department
	Molding	Painting	Total
Direct materials			$0
Direct labor			0
Manufacturing overhead			0
Total cost	$0	$0	$0

3 B -

If the job contained 28 units, what would be the unit product cost? (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations to the nearest dollar amount. Round your final answer to 2 decimal places.)

Unit product cost

per unit