High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental 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 provided the following estimates: MoldingDirect labor-hoursMachine-hours31,00085,00058,80039,000$570,360Fixed manufacturing overhead cost$ 195,500$ 2.60Variable manufacturing overhead per machine-hourVariable manufacturing overhead per direct labor-houre$ 4.60Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerningthe job:DepartmentPaintingMoldingDirect labor-hoursMachine-hoursDirect materials77360$93412772$ 1,120Direct labor cost$ 750$ 990Required:1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.2. Compute the total overhead cost applied to Job 205.3-a. What would be the total manufacturing cost recorded for Job 205?3-b. If the job contained 40 units, what would be the unit product cost?Answer is not complete.Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3A Required 3BWhat would be the total manufacturing cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places.Round other intermediate calculations and final answers to the nearest dollar amount.)MoldingDepartmentPaintingDepartmentTotalDirect materials$Direct laborManufacturing overheadTotal costS2,054 X1,740 x3,580 X7,374 |$0SS2,0541,7403,5807,374Painting Required 1 Required 2 Required 3ARequired 3BIf the job contained 40 units, what would be the unit product cost? (Round "Predetermined overhead rate" to 2 decimalplaces. Round other intermediate calculations to the nearest dollar amount. Round your final answer to 2 decimal places.)Unit product cost$ 320.61 Xper unit

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Description: High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predete

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High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental 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 provided the following estimates:

High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental 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 provided the following estimates:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10MC: Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the...

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