White Company has two departments, Cutting and Finishing. The company uses a job
ID: 2420071 • Letter: W
Question
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:
Department
Compute the predetermined overhead rate to be used in each department. (Round your answers to 2 decimal places.)
Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following:
Department
Compute the total manufacturing cost assigned to Job 203. (Round your intermediate and final answers to 2 decimal places.)
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:
Explanation / Answer
1.Computation of predetermined overhead absorption rate:
2. Computation of total manufacturing cost for Job 203:
Total manufacturing cost for Job 203 is $ 2,274.68
Cutting Finishing Machine hours 50,600 1,800 Direct labor hours 6,700 74,000 Fixed manufacturing overhead cost 380,000 489,000 Fixed manufacturing overhead rate $ 7.51 per machine hour $ 6.61 per direct labor hour Variable manufacturing overhead rate $ 2 per machine hour $ 3.75 per direct labor hour Total manufacturing overhead rate $9.51 per machine hour $ 10.36 per direct labor hourRelated Questions
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