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		8,300		76,000
Machine-hours		64,700		1,100
Total fixed manufacturing overhead cost	$	360,000	$	533,000
Variable manufacturing overhead per machine-hour	$	3.00		—
Variable manufacturing overhead per direct labor-hour		—	$	4.75

Required:

1. Compute the predetermined overhead rate foreach department.

2. The job cost sheet for Job 203, which wasstarted and completed during the year, showed the following:

	Department
	Cutting				Finishing
Direct labor-hours			6				13
Machine-hours			86				3
Direct materials		$	790			$	370
Direct labor cost		$	114			$	247

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

3. Would you expect substantially differentamounts of overhead cost to be assigned to some jobs if the companyused a plantwide predetermined overhead rate based on directlabor-hours, rather than using departmental rates?