What was the amount of underapplied or overapplied overhead in each department at the end...
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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).)
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 Department Molding Painting 37,000 53,200 Direct labor-hours Machine-hours 81,000 37,000 $188,000 $198,000 Direct materials cost $277,000 $513,000 Direct labor cost Fixed manufacturing overhead cost $202,500 $532,000 Variable manufacturing overhead per machine-hour $2.20 Variable manufacturing overhead per direct labor- $4.20 hour 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 Molding Painting Direct labor-hours 80 128 Machine-hours 380 74 $1,200 Materials placed into production $942 $1,020 Direct labor cost $750
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