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?