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High Desert Potteryworks makes a variety of pottery products that it sells to retailers, such as...

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 Moulding Department is based on machine-hours, and the rate in the Painting Department is based on direct labour cost. At the beginning of the year, the company’s management made the following estimates:

Department
Molding Painting
Direct labour-hours 16,250 68,500
Machine-hours 87,000 9,700
Direct materials cost $ 527,000 $ 667,000
Direct labour cost $ 162,500 $ 479,500
Manufacturing overhead cost $ 896,100 $ 815,150



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
Moulding Painting
Direct labour-hours 35 150
Machine-hours 160 25
Materials placed into production $ 460 $ 322
Direct labour cost $ 280 $ 670


Required:

1. Compute the predetermined overhead rate used during the year in the Moulding Department. Compute the rate used in the Painting Department. (Round "Cost per machine-hour" answer to 2 decimal places.)


predetermined overhead rate
Molding department _______ per machine hour
Painting department _______ % of direct labour


2. Compute the total overhead cost applied to Job 205. (Do not round intermediate calculations. Enter your answer rounded to the nearest whole dollar.)

Total overhead cost=



3-a. What would be the total cost recorded for Job 205? (Do not round intermediate calculations. Enter your answers rounded to the nearest whole dollar.)



3-b. If the job contained 70 units, what would be the cost per unit? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Cost per unit=



4. 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:

Department
Moulding Painting
Direct labour-hours 11,700 63,700
Machine-hours 66,700 10,700
Direct materials cost $ 447,000 $ 697,000
Direct labour cost $ 125,000 $ 453,000
Manufacturing overhead cost $ 699,710 $ 753,500

What was the amount of under- or overapplied overhead in each department at the end of the year? (Do not round intermediate calculations.)

molding department:

Painting department:

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