High Desert Potteryworks makes a variety of pottery products that it sells to re

Question

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: Department Molding Painting 36,000 51,900 83,000 35,000 $215,800 $482,670 Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour$ Variable manufacturing overhead per direct labor-hour 2.40 4.40 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job:

Explanation / Answer

Total manufacturing cost recorded :

Total manufacturing cost for job 205 is $7304

Molding Painting Total Direct material 936 1140 2076 Direct labour 700 970 1670 Manufacturing overhead 1750 1808 3558 Total 3386 3918 7304

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