4-31 Job costing, accounting for manufacturing overhead, budgeted rates. 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 manu. facturing 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 2011 budget for the plant is as follows: Manufacturing overhead costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Machining Department $10,660,000 $ 940,000 36,000 205,000 Finishing Department $7,372,000 $3,800,000 145,000 32,000 ASSIGNMENT MATERIAL Required 1. Prepare an overview diagram of Fasano'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 $15,500 $ 400 50 130 Finishing Department $5,000 $1,1,00 Direct materials used Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Compute the total manufacturing overhead cost allocated to Job 431. 4. Assuming that Job 431 consisted of 400 units of product, what is the cost per unit? 5. Amounts at the end of 2011 are as follows: Manufacturing overhead incurred Direct manufacturing labor costs Machine-hours Machining Department $11,070,000 $ 1,000,000 210,000 Finishing Department $8,236,000 $4,400,000 31,000 Compute the under or overallocated manufacturing overhead for each department and for the Dover plant as a whole. 6. Why might Fasano use two different manufacturing overhead cost pools in its job-costing system? firmorializing in lahor rela