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 30,000 54,200
Machine-hours 88,000 36,000
Fixed manufacturing overhead cost $ 228,800 $ 514,900
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 82 133
Machine-hours 380 72
Direct materials $ 938 $ 1,240
Direct labor cost $ 730 $ 1,010




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 37 units, what would be the unit product cost?

Answer:

i think the answer is

Explanation:Molding department rate = (134400/84000+3.20)

= 4.80 per MH

Painting department rate = (516560/58700+5.20) = 14 per DLH

2) Total overhead cost = (380*4.8+14*132) = 3672

3) Total Job Cost

Molding Painting Total

Direct material 938 1200 2138

Direct labor 730 980 1710

Overhead 1824 1848 3672

Total 3492 4028 7520

4) Unit product cost = 7520/39 = 192.82

Even tho this was 1 year ago oh well

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