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  3. red company has two departments: cuttling and finl

Red Company has two departments: cuttling and finlshing. The company uses a job-order costing system...

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Accounting

image Red Company has two departments: cuttling and finlshing. The company uses a job-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 labour cost. At the beginning of the year, the company made the following estimates: Required: 1. Compute the predetermined overhead rate to be used in each department. (Round your answers to 2 decimal places.) 2 Assume that the overhead rates that you computed in Requirement (1) are in effect. The job cost sheet for job 129, which was starte and completed during the year, showed the following: Compute the total overhead cost applied to job 129. (Do not round intermedlate calculations and round your answer to 2 decimal places.) 3. Would you expect substantlally different amounts of overhead cost to be asslgned to some jobs if the company used a plantwide overhead rate based on direct labour cost, rather than using departmental rates? Yes No

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