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Job order costing

Exercise 2-13 Departmental Predetermined Overhead Rates [LO2-1, LO2-2, LO2-4) White Company has two departments, Cutting and Finishing The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates Machine hours Total fixed manutfacturing overhead cost Varlable manufacturing overhead per machine-hour Variable manufacturing ovechead per di rect labor-hour 50,2003,700 400,000 499,000 2.75 2.00 Required: 1. Compute the predetermined overhead rate for each department 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following Direet lab 89 5730$3 $132 242 materiala Direet labor oost Using the predetermined overhead rates that you computed in requirement (0), compute the total manufacturing cost assigned a 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantw Complete the question by entering your answers in the tabs given Required1 Required 2 Required 3 Compute the predetermined overhead rate for each

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