Advanced Placement (AP), 25.05.2020 06:57 magics
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:
Department
Molding Painting
Direct labor-hours 30,000 54,200
Machine-hours 88,000 36,000
Fixed manufacturing overhead cost $ 228,800 $ 514,900
Variable manufacturing overhead per machine-hour $ 2.60 -
Variable manufacturing overhead per direct labor-hour - $ 4.60
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 82 133
Machine-hours 380 72
Direct materials $ 938 $ 1,240
Direct labor cost $ 730 $ 1,010
Required:
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 37 units, what would be the unit product cost?
Answers: 3
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High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company...
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