20 M Question 5: The Fasano Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Fasano uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machinehours as the allocation base, and the finishing department with direct manufacturing labor costs as the allocation base). The 2011 budget for the plant is as follows: 2 3 Machining Department Finishing Department Manufacturing overhead costs $10,660,000 $7,372,000 5 Direct manufacturing labor costs $ 940,000 $3,800,000 6 Direct manufacturing labor-hours 36,000 145,000 7 Machine-hours 205,000 32,000 8 9 10 Required: 11 1. Prepare an overview diagram of Fasano's job-costing system 12 2. What is the budgeted manufacturing overhead rate in the machining department? In the finishing department? 13 3. During the month of January, the job-cost record for Job 431 shows the following: 14 Compute the total manufacturing overhead cost allocated to Job 431. 15 16 Machining Department Finishing Department 17 Direct materials used $15,500 $ 5,000 18 Direct manufacturing labor costs $ 400 $1,1,00 19 Direct manufacturing labor-hours 50 50 20 Machine-hours 130 20 21