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: Painting 53,800 38,000 $ 478,820 $ 4.80 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 Direct labor-hours Machine-hours Direct materials. Direct labor cost Department Molding. 82 330 $ 940 $ 750 Painting. 125 73 $ 1,240 $ 990 Department Molding 35,500 90,000 $ 216,000 $ 2.80 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 23 units, what would be the unit product cost?

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Chapter1: Financial Statements And Business Decisions
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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:
Painting
53,800
38,000
$ 478,820
$ 4.80
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
Direct labor-hours
Machine-hours
Direct materials
Direct labor cost
Department
Molding.
82
330
$ 940
$ 750
Painting.
125
73
$ 1,240
$ 990
Department
Molding
35,500
90,000
$ 216,000
$ 2.80
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 23 units, what would be the unit product cost?
Transcribed Image Text: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: Painting 53,800 38,000 $ 478,820 $ 4.80 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 Direct labor-hours Machine-hours Direct materials Direct labor cost Department Molding. 82 330 $ 940 $ 750 Painting. 125 73 $ 1,240 $ 990 Department Molding 35,500 90,000 $ 216,000 $ 2.80 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 23 units, what would be the unit product cost?
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