Xcel b. Gin c. Net income PROBLEM 3-8 Using Multiple Departments; Applying Overhead [LO2 - CC4; LO3-CC5; LO7. The company uses a job-order costing system in which predetermined overhead rates are p High Desert Potteryworks makes a variety of pottery products that it sells to retailers, such as Ho on machine-hours, and the rate in the painting department is based on direct labour cost. At the b manufacturing overhead cost to jobs. The predetermined overhead rate in the moulding departme the year, the company's management made the following estimates: Moulding 12,000 Department Direct labour-hours 70,000 Machine-hours $510,000 Direct materials cost $130,000 Direct labour cost Manufacturing overhead cost $518,000