Reference no: EM132632654

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                            32,500                         58,200

Machine-hours                                   81,000                         31,000

Fixed manufacturing overhead cost         $162,000                          $523,800

Variable manufacturing overhead per machine-hour $3.00                        -

Variable manufacturing overhead per direct labor-hour  -                       $5.00

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                             88                          131

Machine-hours                                 390                            65

Direct materials                                $948                             $1,180

Direct labor cost                                 $710                             $960

Required:

Question 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.

Question 2. Compute the total overhead cost applied to Job 205.

Question 3-a. What would be the total manufacturing cost recorded for Job 205?

Question 3-b. If the job contained 33 units, what would be the unit product cost?