Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of machine-hours in the Machining Department and on the basis of direct labor-hours in the Assembly Department. At the beginning of 20X3,the annual budget for the company is as follows.

MachiningAssembly

Directlabor-hours30,00060,000

Machine-hours80,00020,000

Direct laborcost$500,000$900,000

Manufacturing overheadcosts$420,000$240,000

Required:Please show your calculations!

(1)Determine the budgeted manufacturing overhead rate for each department.

(2) The actual cost of Job #316 is as follows:

MachiningAssembly

Directlabor-hours12070

Machine-hours605

Direct materialcost$300$200

Direct laborcost$100$400

What is the total cost of Job #316?

(3)At the end of 20X3, the actual amounts are as follow. Compute the under- or overallocated manufacturing overhead for the whole company.

Hint:Please calculate the under- or overallocated manufacturing overhead for each department first, and then add up the results of the two departments.

Machining Department

AssemblyDepartment

Manufacturing overhead incurred

$432,000

$260,000

Direct labor-hours

31,000

63,000

Machine-hours

85,000

21,000

Prepare the journal entry to write off the difference between actual and allocated overhead cost directly to cost of goods sold.