4-31Job costing, accounting for manufacturing overhead, budgeted rates.The Pisano Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Pisano 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 2014 budget for the plant is as follows:

Required

Machining DepartmentFinishing DepartmentManufacturing overhead costs$9,065,000$8,181,000Direct manufacturing labor costs$970,000$4,050,000Direct manufacturing labor-hours 36,000 155,000Machine-hours 185,000 37,000

1. overview diagram of Pisano'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:
4. Machining DepartmentFinishing DepartmentDirect materials used$13,000$ 5,000Direct manufacturing labor costs$ 900$1,250Direct manufacturing labor-hours 20 70Machine-hours 140 20
5. Compute the total manufacturing overhead cost allocated to Job 431.
6. Assuming that Job 431 consisted of 300 units of product, what is the cost per unit?
7. Amounts at the end of 2014 are as follows:
8. Machining DepartmentFinishing DepartmentManufacturing overhead incurred$10,000,000$7,982,000Direct manufacturing labor costs$1,030,000$4,100,000Machine-hours 200,000 34,000
9. Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole.
10. Why might Pisano use two different manufacturing overhead cost pools in its job-costing system?