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(Solved) (Latest ver. Aug 2020) - Job Costing, Accounting for Manufacturing OH

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The Lynn Company uses a job-costing system at its Minneapolis plant. The plant has has a Machining Department and an Assembly Department. Its job-costing system has two direct-cost cateories (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 2009 budget for the plant is:
Machining DeptAssembly Dept

Manufacturing OH$1,800,000$3,600,000
Direct Manufacturing Labor Costs$1,400,000$2,000,000
Direct Manufacturing Labor Hours$100,000$200,000
Machine-hours$50,000$200,000

1.Present an overview diagram of Lynn's job-costing system. Compute the budgeted manufacturing OH rate for each department.
2.During February, the job-cost record for Job 494 contained the following:

Machining DeptAssembly Dept

Direct Materials Used$45,000$70,000
Direct Manufacturing Labor Costs$14,000$15,000
Direct Manufacturing Labor Hours1,0001,500
Machine-hours2,0001,000

Compute the total manufacturing overhead costs allocated to Job 494.

3.At the end of 2009, the actual manufacturing overhead costs were $2,100,000 in Machining and $3,700,000 in Assembly. Assume that 55,000 actual machine-hours were used in Machining and that actual direct manufacturing labor costs in Assembly were $2,200,000. Compute the over- or under-allocated manufacturing overheard for each department.

 







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