Check my work High Desert Potteryworks makes a variety of pottery products that
ID: 2608609 • Letter: C
Question
Check my work High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor- hours At the beginning of the year, the company provided the following estimates Direct labor-hours Machine-hours Fixed sanufacturing overhead cost Varlable nanufacturing overhead per machine hour Variable nanufacturing overhead per direct labor-hour 4,99855,00 88,00032,800 228,800 $473,860 3.0 $ 5.00 ob 205 was started on August 1 and completed on August 10. the job lob 205 was started on August 1 and completed on August 1o The company's cost records show the following information concerning records show t Direct Labor-hours Machine-hours Direct saterials Direct Jabor cost 127 74 934 $1,140 72@ $ 160 90Explanation / Answer
1. Molding Department: = $228,000/$88,000 MHs = $2.59 per MH
Painting Department = $580,000/275,500 direct labor cost = 210% direct labor cost
2.
3.
If, the job contained 38 units, product cost will be $934 * 38units = $35,492 in Molding, and $1140 * 38units = $43320 in Painting.
Overhead Applied Molding Department: 390MHs x $2.59 per MH 1010 Painting Department: $960 x 210% 2016 Total Overhead Cost Applied 3026