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In: AccountingWhite Company has two departments, Cutting and Finishing. Thecompany uses a job-order costing system and...White Company has two departments, Cutting and Finishing. Thecompany uses a job-order costing system and computes apredetermined overhead rate in each department. The CuttingDepartment bases its rate on machine-hours, and the FinishingDepartment bases its rate on direct labor-hours. At the beginningof the year, the company made the following estimates:DepartmentCuttingFinishingDirect labor-hours8,30076,000Machine-hours64,7001,100Total fixed manufacturing overhead cost$360,000$533,000Variable manufacturing overhead per machine-hour$3.00—Variable manufacturing overhead per direct labor-hour—$4.75Required:1. Compute the predetermined overhead rate foreach department.2. The job cost sheet for Job 203, which wasstarted and completed during the year, showed the following:DepartmentCuttingFinishingDirect labor-hours613Machine-hours863Direct materials$790$370Direct labor cost$114$247Using the predetermined overhead rates that you computed inrequirement (1), compute the total manufacturing cost assigned toJob 203.3. Would you expect substantially differentamounts of overhead cost to be assigned to some jobs if the companyused a plantwide predetermined overhead rate based on directlabor-hours, rather than using departmental rates?