4-25 Job costing, accounting for manufacturing overhead, budgeted rates. The Lulu 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 manufactur- ing 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 2020 budget for the plant is as follows: Manufacturing overhead Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Machining Department $1,800,000 $1,400,000 180,000 50,000 Assembly Department $4,000,000 $2,000,000 250,000 250,000 1. Identify the components of the overview diagram of Lulu's job-costing system. Compute the budgeted manufacturing overhead rate for each department 2. During February, the job-cost record for Job 494 contained the following: Direct materials used Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Machining Department $45,000 $19,000 1,400 2,100 Assembly Department $74,000 $20,000 1,800 1,100 Compute the total manufacturing overhead costs allocated to Job 494. 3. At the end of 2020, the actual manufacturing overhead costs were $2,000,000 in machining and $4,100,000 in assembly. Assume that 54,000 actual machine-hours were used in machining and that actual direct manufacturing labor costs in assembly were $2,300,000. Compute the under or overal- located manufacturing overhead for each department