The Maclin Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Maclin uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department withmachine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The 2017 budget for the plant is asfollows: Machining Department Finishing Department Manufacturing overhead costs $9,180,000 $8,181,000 Direct manufacturing labor costs $920,000 $4,050,000 Direct manufacturing labor-hours 34,000 150,000 Machine-hours 180,000 37,000 Question: 5. Amounts at the end of 2017 are as follows: Machining Finishing Department Department Manufacturing overhead $10,350,000 $8,432,000 incurred Direct manufacturing labor $1,000,000 $4,100,000 costs Machine-hours 200,000 33,000 Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole. 6. Why might Maclin use two different manufacturing overhead cost pools in its job-costing system?
The Maclin Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Maclin uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department withmachine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The 2017 budget for the plant is asfollows: Machining Department Finishing Department Manufacturing overhead costs $9,180,000 $8,181,000 Direct manufacturing labor costs $920,000 $4,050,000 Direct manufacturing labor-hours 34,000 150,000 Machine-hours 180,000 37,000 Question: 5. Amounts at the end of 2017 are as follows: Machining Finishing Department Department Manufacturing overhead $10,350,000 $8,432,000 incurred Direct manufacturing labor $1,000,000 $4,100,000 costs Machine-hours 200,000 33,000 Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole. 6. Why might Maclin use two different manufacturing overhead cost pools in its job-costing system?
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter18: Activity-based Costing
Section: Chapter Questions
Problem 2PA: The management of Gwinnett County Chrome Company, described in Problem 1A, now plans to use the...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning