High Desert Potteryworks makes a variety of pottery productsthat it sells to retailers. The company uses a job-order costingsystem in which departmental predetermined overhead rates are usedto apply manufacturing overhead cost to jobs. The predeterminedoverhead rate in the Molding Department is based on machine-hours,and the rate in the Painting Department is based on directlabor-hours. At the beginning of the year, the company provided thefollowing estimates:
| Department |
| Molding | Painting |
| Direct labor-hours | | 32,000 | | | 56,600 | |
| Machine-hours | | 81,000 | | | 35,000 | |
| Fixed manufacturing overhead cost | $ | 194,400 | | $ | 526,380 | |
| Variable manufacturing overhead per machine-hour | $ | 2.60 | | | - | |
| Variable manufacturing overhead per direct labor-hour | | - | | $ | 4.60 | |
|
Job 205 was started on August 1 and completed on August 10. Thecompany's cost records show the following information concerningthe job:
| Department |
| Molding | Painting |
| Direct labor-hours | | 79 | | | 134 | |
| Machine-hours | | 360 | | | 67 | |
| Direct materials | $ | 944 | | $ | 1,260 | |
| Direct labor cost | $ | 710 | | $ | 990 | |
|
Required:
1. Compute the predetermined overhead rates used in the MoldingDepartment 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 Job205?
3-b. If the job contained 40 units, what would be the unitproduct cost?
