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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:

	Department
	Molding	Painting
Direct labor-hours	33,000	50,600
Machine-hours	83,000	32,000
Fixed manufacturing overhead cost	$ 215,800	$ 475,640
Variable manufacturing overhead per machine-hour	$ 2.40	-
Variable manufacturing overhead per direct labor-hour	-	$ 4.40

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	72	131
Machine-hours	390	73
Direct materials	$ 948	$ 1,180
Direct labor cost	$ 720	$ 980

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 20 units, what would be the unit product cost?

Require 1:

Molding Department ________ per MH

Painting Department ________ per DLH

Require 2:

Total overhead cost _________

Require 3A:

Molding Department Painting department Total

Direct Materials

Direct Labor

Manufacturing overhead

Total Cost

Require 3B:

Unit product Cost ______per unit

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