Problem 3-21 (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	31,000	59,700
Machine-hours	87,000	38,000
Fixed manufacturing overhead cost	$ 208,800	$ 543,270
Variable manufacturing overhead per machine-hour	$ 2.60	0
Variable manufacturing overhead per direct labor-hour	0	$ 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	86	133
Machine-hours	330	74
Direct materials	$ 946	$ 1,140
Direct labor cost	$ 720	$ 980

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 39 units, what would be the unit product cost?