# I ALWAYS THUMBS UP, THANKS! value 1.75 points White Company has two departments, Cutting and Finishing....

###### Question:

I ALWAYS THUMBS UP, THANKS!
value 1.75 points White Company has two departments, Cutting and Finishing. 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 labor-hours. At the beginning of the year, the company made the following estimates: Department Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Cutting Finishing 7,800 77,000 63,300 1,800 $390,000$ 423,000 $3.00 -$ 4.75 Required: 1. Compute the predetermined overhead rate to be used in each department. (Round your answers to 2 decimal places.) Department Cutting Finishing Predetermined overhead rate per MH per DLH
2. Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 203. which was started and completed during the year, showed the following: Department Cutting Finishing 5 12 81 Direct labor-hours Machine-hours Materials requisitioned Direct labor cost $730$ 39 $380$ 150 Compute the total manufacturing cost assigned to Job 203. (Round your intermediate and final answers to 2 decimal places.) Total manufacturing cost 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plant wide overhead rate based on direct labor-hours, rather than using departmental rates? No Yes