Answer:
1. Molding Department:
The estimated total manufacturing overhead cost in the Molding Department is computed as follows:
Y = $497,000 + $1.50 per MH × 70,000 MHs
Estimated fixed manufacturing overhead $ 497,000
Estimated variable manufacturing overhead:
$1.50 per MH × 70,000 MHs= 105,000
Estimated total manufacturing overhead cost $ 602,000
The predetermined overhead rate is computed as follows:
Estimated total manufacturing overhead (a) $ 602,000
Estimated total machine-hours (b) 70,000 MHs
Predetermined overhead rate (a) ÷ (b) $ 8.60 per MH
Painting Department:
The estimated total manufacturing overhead cost in the Painting Department is computed as follows:
Y = $615,000 + $2.00 per DLH × 60,000 DLHs
Estimated fixed manufacturing overhead $ 615,000
Estimated variable manufacturing overhead:
$2.00 per DLH × 60,000 DLHs= 120,000
Estimated total manufacturing overhead cost $ 735,000
The predetermined overhead rate is computed as follows:
Estimated total manufacturing overhead (a) $ 735,000
Estimated total DLHs (b) 60,000 DLHs
Predetermined overhead rate (a) ÷ (b) $ 12.25 per DLH
2.
Molding Department overhead applied:
110 machine-hours × $8.60 per machine-hour
$ 946
Painting Department overhead applied:
84 direct labor-hours × $12.25 per DLH
1,029
Total overhead cost $ 1,975
3-a.
Total cost of Job 205:
Molding Dept. Painting Dept. Total
Direct materials $770 $1,332 $2,102
Direct labor 525 1,470 1,995
Manufacturing overhead applied
946 1,029 1,975
Total manufacturing cost
$ 2,241 $3,831 $6,072
3-b.
Unit product cost for Job 205:
Total manufacturing cost (a) $ 6,072
Number of units in the job (b) 50 units
Unit product cost (a) ÷ (b) $ 121.44 per unit
Explanation: