Reference no: EM13912516
High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job-order costing system in which 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's management made the following estimates:
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Department
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Molding
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Painting
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Direct labor-hours
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12,000
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60,000
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Machine-hours
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70,000
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8,000
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Direct materials cost
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$510,000
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$650,000
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Direct labor cost
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$130,000
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$420,000
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Fixed manufacturing overhead cost
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$497,000
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$615,000
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Variable manufacturing overhead per machine-hour
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$1.50
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-
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Variable manufacturing overhead per direct labor-hour
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-
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$2.00
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Job 205 was started on August 1 and completed on August 10. The company's cost records
show the following information concerning the job:
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Department
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Molding
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Painting
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Direct labor-hours
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30
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84
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Machine-hours
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110
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20
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Materials placed into production
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$470
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$332
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Direct labor cost
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$325
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$588
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Required:
Q1
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.
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Compute the predetermined overhead rate used during the year in the Molding Department. Compute the rate used in the Painting Department. (Round your answers to 2 decimal places.)
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Predetermined overhead rate
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Molding Department
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per MH
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Painting Department
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per DLH
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Q2. Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)
Q3-a. What would be the total cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)
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Department
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Molding
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Painting
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Total
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Direct materials
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Direct labor
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Manufacturing overhead
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Total cost
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Q3-b. If the job contained 50 units, what would be the unit product cost? (Round "Predetermined overhead rate" and final answer to 2 decimal places and other intermediate calculations to the nearest dollar amount.)
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Unit product cost
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per unit
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Q4. At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year:
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Department
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Molding
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Painting
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Direct labor-hours
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10,000
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62,000
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Machine-hours
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65,000
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9,000
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Direct materials cost
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$430,000
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$680,000
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Direct labor cost
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$108,000
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$436,000
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Manufacturing overhead cost
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$570,000
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$750,000
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What was the amount of underapplied or overapplied overhead in each department at the end of the year? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount. Select "None" for no effect (i.e., zero variance).)
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Molding Department
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Painting Department
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