White Company has two departments, Cutting and Finishing. Thecompany uses a job-order costing system and computes apredetermined overhead rate in each department. The CuttingDepartment bases its rate on machine-hours, and the FinishingDepartment bases its rate on direct labor-hours. At the beginningof the year, the company made the following estimates:

	Department
	Cutting		Finishing
Direct labor-hours		6,000		30,000
Machine-hours		48,000		5,000
Total fixed manufacturingoverhead cost	$	264,000	$	366,000
Variable manufacturing overheadper machine-hour	$	2.00		—
Variable manufacturing overheadper direct labor-hour		—	$	4.00

  

Required:

1. Compute the predetermined overhead rate for eachdepartment.

2. The job cost sheet for Job 203, which was started andcompleted during the year, showed the following:

	Department
	Cutting				Finishing
Direct labor-hours			6				20
Machine-hours			80				4
Direct materials		$	500			$	310
Direct labor cost		$	108			$	360

Using the predetermined overhead rates that you computed inrequirement (1), compute the total manufacturing cost assigned toJob 203.

3. Would you expect substantially different amounts of overheadcost to be assigned to some jobs if the company used a plantwidepredetermined overhead rate based on direct labor-hours, ratherthan using departmental rates?