Concept explainers
Machining Department | Assembly Department | |
Manufacturing overhead | $1,500,000 | $5,100,000 |
Direct manufacturing labor costs | $1,600,000 | $3,000,000 |
Direct manufacturing labor-hours | 120,000 | 280,000 |
Machine-hours | 30,000 | 270,000 |
- 1. Present an overview diagram of Matthew’s job-costing system. Compute the budgeted manufacturing overhead rate for each department.
Required
- 2. During February, the job-cost record for Job 494 contained the following:
Machining Department | Assembly Department | |
Direct materials used | $42,000 | $78,000 |
Direct manufacturing labor costs | $15,000 | $19,000 |
Direct manufacturing labor-hours | 1,100 | 1,300 |
Machine-hours | 2,800 | 1,100 |
Compute the total manufacturing overhead costs allocated to Job 494.
- 3. At the end of 2017, the actual manufacturing overhead costs were $1,800,000 in machining and $5,300,000 in assembly. Assume that 33,000 actual machine-hours were used in machining and that actual direct manufacturing labor costs in assembly were $3,200,000. Compute the over- or underallocated manufacturing overhead for each department.
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