Question

The Luke Company uses a normal job-costing systern at its Minneapolis plant. The plant has a machining department and an asserbly department. Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department overhead, allocated to jobs based on actual machine-hours, and the assembly department overhead, allocated to jobs based on actual direct manufacturing labor costs). The 2017 budget for the plant is as follows: (Click the icon to view the budget data.) Read the requirements 1 J J Direct Costs K Direct Materials L Direct Manufacturing Labor к Enter the formula, then enter the budgeted manufacturing overhead and cost allocation bases to solve for the budgeted manufacturing overhead rate for each department. (Enter the percentage result as a whole percentage. Abbreviations used: manuf. = manufacturing, DM direct manufacturing.) Budgeted manuf, overhead | Budgeted cost allocation base = Budgeted manufacturing overhead rate Machining S 2,000,000 50,000 $ 40 per machine hour Assembly S 4,000,000 2.000.000 200 % of DM labor costs Requirement 2. Review the February job-cost record for Job 494. Compute the total manufacturing overhead costs allocated to Job 494. (Abbreviations used: MOH = manufacturing overhead.) Enter the formula to calculate the manufacturing overhead to allocate to a job. Budgeted overhead rate Actual cost allocation base MOH allocated to job i Data Table X Compute the total manufacturing overhead costs allocated to Job 494. (do not round intermediary calculations.) MOH allocated to job Machining overhead Assembly overhead Manufacturing overhead Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Machining Department Assembly Department $ 2,000,000 $ 4,000,000 $ 1,300,000 $ 2,000,000 150,000 230,000 50,000 230,000 Total manufacturing costs allocated to job 494 Enter any number in the edit fields and then click Check Answer. Print 1 part Done Clear All remaining

Answer 1

2.

Job 494
Machining Overhead	$           80,000	=2000*40
Assembly Overhead	$           36,000	=18000*200%
Total MOH	$        116,000

3.

Overhead applied
Machining Overhead	$     2,200,000	=55000*40
Assembly Overhead	$     4,200,000	=2100000*200%
Total Overhead applied	$     6,400,000
Actual Overhead	$     6,600,000
Under allocated overhead	$        200,000

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