White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a pre

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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:
Required:
1. Compute the predetermined overhead rate for each
department.
2. The job cost sheet for Job 203, which was started and
completed during the year, showed the following:
Using the predetermined overhead rates that you computed in
requirement (1), compute the total manufacturing cost assigned to
Job 203.
3. Would you expect substantially different amounts of overhead
cost to be assigned to some jobs if the company used a plantwide
predetermined overhead rate based on direct labor-hours, rather
than using departmental rates?