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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 Moulding Department is based on machine-hours, and the rate in the Painting Department is based on direct labour cost. At the beginning of the year, the companys management made the following estimates:

	Department
	Moulding			Painting
Direct labour-hours		17,000			70,000
Machine-hours		90,000			10,000
Direct materials cost	$	530,000		$	670,000
Direct labour cost	$	170,000		$	490,000
Manufacturing overhead cost	$	954,000		$	857,500

Job 205 was started on August 1 and completed on August 10. The companys cost records show the following information concerning the job:

	Department
	Moulding			Painting
Direct labour-hours		30			180
Machine-hours		190			20
Materials placed into production	$	430		$	292
Direct labour cost	$	250		$	640

Required:

1. Compute the predetermined overhead rate used during the year in the Moulding Department. Compute the rate used in the Painting Department. (Round "Cost per machine-hour" answer to 2 decimal places.)

2. Compute the total overhead cost applied to Job 205. (Do not round intermediate calculations. Enter your answer rounded to the nearest whole dollar.)

3-a. What would be the total cost recorded for Job 205? (Do not round intermediate calculations. Enter your answers rounded to the nearest whole dollar.)

3-b. If the job contained 70 units, what would be the cost per unit? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

4. At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year:

	Department
	Moulding			Painting
Direct labour-hours		12,000			64,000
Machine-hours		67,000			11,000
Direct materials cost	$	450,000		$	700,000
Direct labour cost	$	128,000		$	456,000
Manufacturing overhead cost	$	723,200		$	770,000

What was the amount of under- or overapplied overhead in each department at the end of the year? (Do not round intermediate calculations.)

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 Moulding Department is based on machine-hours, and the rate in the Painting Department is based on direct labour cost. At the beginning of the year, the companys management made the following estimates:

	Department
	Moulding			Painting
Direct labour-hours		17,000			70,000
Machine-hours		90,000			10,000
Direct materials cost	$	530,000		$	670,000
Direct labour cost	$	170,000		$	490,000
Manufacturing overhead cost	$	954,000		$	857,500

Job 205 was started on August 1 and completed on August 10. The companys cost records show the following information concerning the job:

	Department
	Moulding			Painting
Direct labour-hours		30			180
Machine-hours		190			20
Materials placed into production	$	430		$	292
Direct labour cost	$	250		$	640

Required:

1. Compute the predetermined overhead rate used during the year in the Moulding Department. Compute the rate used in the Painting Department. (Round "Cost per machine-hour" answer to 2 decimal places.)

	Predetermined Overhead Rate Moulding Department ------- per machine-hour Painting Department ------- % of direct labour cost

2. Compute the total overhead cost applied to Job 205. (Do not round intermediate calculations. Enter your answer rounded to the nearest whole dollar.)

	Total overhead cost $------

3-a. What would be the total cost recorded for Job 205? (Do not round intermediate calculations. Enter your answers rounded to the nearest whole dollar.)

	Department Moulding Painting Total Direct materials $ $ $ Direct labour Manufacturing overhead applied Total cost $ $ $

3-b. If the job contained 70 units, what would be the cost per unit? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

	Cost per unit ?

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