Job costing, accounting for manufacturing overhead, budgeted rates. The Matthew Company uses a normal job-costing system at its Minneapolis plant. The plant has a machining

Academic Writing accounting, business-managerial-accounting Job costing, accounting for manufacturing overhead, budgeted rates. The Matthew Company uses a normal job-costing system at its Minneapolis plant. The plant has a machining

accounting, business-managerial-accounting

Job costing, accounting for manufacturing overhead, budgeted rates. The Matthew Company uses a normal job-costing system at its Minneapolis plant. The plant has a machining

Job costing, accounting for manufacturing overhead, budgeted rates. The Matthew Company uses a normal job-costing system at its Minneapolis plant. The plant has a machining department and an assembly 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: Question: During Feb the job cost record for job 494 contained the following: Machining Department             Assembly Department  Direct materials used         $42,000                                       $78,000 Direct manuf. labor cost    $15,000                                       $19,000 Direct manuf. labor-hors    1,100                                            1,300 Machine hours                    2,800                                            1,100 #1 Compute the total manufacturing costs allocated to job 494 #2 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. Transcribed Image Text: 4-25 Job costing, accounting for manufacturing overhead, budgeted rates. The Matthew
Company uses a normal job-costing system at its Minneapolis plant. The plant has a machining
department and an assembly 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:
Machining Department
Assembly Department
Manufacturing overhead
Direct manufacturing labor costs
Direct manufacturing labor-hours
$5,100,000
$3,000,000
280,000
270,000
$1,500,000
$1,600,000
120,000
30,000
Machine-hours

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