Compute the predetermined overhead rate to be used

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Reference no: EM131209124

White Company - predetermined overhead

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:

Department

Cutting

 

  Direct labor-hours

 

 

 

  Machine-hours

 

 

 

Total fixed manufacturing overhead cost

$

 

$

Variable manufacturing overhead per machine-hour

$

2.00

-   

Variable manufacturing overhead per direct labor-hour

-   

$

2.75

Required:

1. Compute the predetermined overhead rate to be used in each department. (Round your answers to 2 decimal places.)

2. Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following:

Department

Cutting

 

Direct labor-hours

4



Machine-hours

86

6


Materials requisitioned

 

$ 720

$ 360

Direct labor cost

 

$ 35

$ 360

Compute the total manufacturing cost assigned to Job 203. (Round your intermediate and final answers to 2 decimal places.)

Reference no: EM131209124

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