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
|
|
Direct labor-hours
|
12,000
|
60,000
|
|
Machine-hours
|
70,000
|
8,000
|
|
Direct materials cost
|
$510,000
|
$650,000
|
|
Direct labor cost
|
$130,000
|
$420,000
|
|
Fixed manufacturing overhead cost
|
$497,000
|
$615,000
|
|
Variable manufacturing overhead per machine-hour
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$1.50
|
-
|
|
Variable manufacturing overhead per direct labor-hour
|
-
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$2.00
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|
Job 205 was started on August 1 and completed on August 10. The company's cost records
show the following information concerning the job:
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Department
|
|
|
|
|
Molding
|
Painting
|
|
Direct labor-hours
|
30
|
84
|
|
Machine-hours
|
110
|
20
|
|
Materials placed into production
|
$470
|
$332
|
|
Direct labor cost
|
$325
|
$588
|
|
Required:
Q1
|
.
|
Compute the predetermined overhead rate used during the year in the Molding Department. Compute the rate used in the Painting Department. (Round your answers to 2 decimal places.)
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Predetermined overhead rate
|
|
Molding Department
|
|
per MH
|
|
Painting Department
|
|
per DLH
|
|
Q2. Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)
Q3-a. What would be the total cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)
|
Department
|
|
|
Molding
|
Painting
|
Total
|
|
Direct materials
|
|
|
|
|
Direct labor
|
|
|
|
|
Manufacturing overhead
|
|
|
|
|
Total cost
|
|
|
|
Q3-b. If the job contained 50 units, what would be the unit product cost? (Round "Predetermined overhead rate" and final answer to 2 decimal places and other intermediate calculations to the nearest dollar amount.)
|
Unit product cost
|
|
per unit
|
Q4. At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year:
|
Department
|
|
|
|
|
Molding
|
Painting
|
|
Direct labor-hours
|
10,000
|
62,000
|
|
Machine-hours
|
65,000
|
9,000
|
|
Direct materials cost
|
$430,000
|
$680,000
|
|
Direct labor cost
|
$108,000
|
$436,000
|
|
Manufacturing overhead cost
|
$570,000
|
$750,000
|
|
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).)
|
|
|
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Molding Department
|
|
|
|
Painting Department
|
|
|