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Hello, Could you help me understand the approach to these problems High Desert P

ID: 2388473 • Letter: H

Question

Hello, Could you help me understand the approach to these problems

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 cost. At the beginning of the year, the company's management made the following estimates:

Molding Painting
Direct labor-hours 20,000 61,000
Machine-hours 9,400 16,400
Direct materials cost $17,800 $5,300
Direct labor cost $429,200 $800,900
Manuf. o.h. cost $329,000 $312,351

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 18 87
Machine-hours 11 45
Materials placed into production $52 $28
Direct labor cost $420 $1,900

Questions
#1 Compute the predetermined overhead rate used during the year in the Molding Department. Compute the rate used in the Painting Department.

#2 Compute the total overhead cost applied to Job 205.

#3 (a) What would be the total cost recorded for Job 205?
i know that i need to look at

DM
DL
Manuf OH applied
Total Cost



#3 b) If the job contained 38 units, what would be the unit product cost?

Explanation / Answer

Manuf Oheads in Molding Dept $329,000.00 Machine Hours 9,400.00 MOH Rate per Mhour 35.00 Manuf Oheads in painting Dept 312,351.00 Labor Hours 61,000.00 MOH Rate per Lhour 5.12 Total Over head Cost applied to job #205 MOH of Molding Dept 35 x 11 385.00 MOH of Painting Dept 5.12 X 87 445.44 Total MOH Cost for job #205 830.44

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