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CoursHeroTranscribedText: White Company has two departments, Cutting and Finishing. The company uses ajob-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 laborhours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct laborhours 8,700 61,000 Machinehours 64,000 2,300 Total fixed manufacturing overhead cost $400,000 $535,000 Variable manufacturing overhead per machinehour $ 2.00 Variable manufacturing overhead per direct laborhour $ 2.75 Required: 1. Compute the predetermined overhead rate for each department. 2. Thejob cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Finishing Direct laborhours 4 14 Machine-hours 86 5 Direct materials $700 $380 Direct labor cost $ 84 $294 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct laborhours, rather than using departmental rates

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