Question
4,2 The Maclin Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Maclin uses
4,2
The
Maclin
Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department.
Maclin
uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The
2020
budget for the plant is as follows:
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(Click
the icon to view the
2020
budget.)
Read the
requirements
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.
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Part 1
Requirement 1. Identify the components of the overview diagram of
Maclin's
job-costing system. (Abbreviations used: Manuf. = Manufacturing.)
The
Maclin
Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department.
Maclin
uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The
2020
budget for the plant is as follows:
LOADING...
(Click
the icon to view the
2020
budget.)
Read the
requirements
LOADING...
.
Question content area bottom
Part 1
Requirement 1. Identify the components of the overview diagram of
Maclin's
job-costing system. (Abbreviations used: Manuf. = Manufacturing.)
A | } | B | C |
| ||||||
D | } | E | F |
|
G | } | H I |
|
J | } | K | L |
Requirements
1. Identify the components of the overview diagram of
Maclin's
job-costing system.
2. What is the budgeted manufacturing overhead rate in the machining department? In the finishing department?
3. During the month of January, the job-cost record for Job 431 shows the following:
Machining Department | Finishing Department | |
Direct materials used | $13,500 | $4,500 |
Direct manufacturing labor costs | $500 | $1,300 |
Direct manufacturing labor-hours | 20 | 70 |
Machine-hours | 100 | 20 |
Compute the total manufacturing overhead cost allocated to Job 431.
4. Assuming that Job 431 consisted of
200
units of product, what is the cost per unit?
5. Amounts at the end of
2020
are as follows:
Machining Department | Finishing Department | |
Manufacturing overhead incurred | $13,160,000 | $8,670,000 |
Direct manufacturing labor costs | $1,020,000 | $4,500,000 |
Machine-hours | 240,000 | 31,000 |
Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole.
6. Why might
Maclin
use two different manufacturing overhead cost pools in its job-costing system?
Data table
Machining Department | Finishing Department | |
Manufacturing overhead costs | $10,530,000 | $7,644,000 |
Direct manufacturing labor costs | $910,000 | $3,900,000 |
Direct manufacturing labor-hours | 35,000 | 155,000 |
Machine-hours | 195,000 | 33,000 |
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