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Home / Questions / High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company

High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company


High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing 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 Departent Painting Molding a9,s0 81,000 $259,200 $529,240 52,400 Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable nanufacturing overhead per machine-hour Variable nanufacturing overhead per direct labor-hour 37,000 $2.20 4.20 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Depa MoldinePaint ing nt Direct labor-hours Machine hours Direct materials Direct labor cost 87 133 68 330 $934 $1.260 730 $1,010 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 32 units, what would be the unit product cost?

Apr 08 2020 View more View Less

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