Question
he Kristopiier Company uses a job-costing system at its plant. The plant has a Machining Department and an Assembly Department, Its job-costing system has two
he Kristopiier Company uses a job-costing system at its plant. The plant has a Machining
Department and an Assembly Department, Its job-costing system has two direct-cost
categories (direct materials and direct manufacturing 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 cm
actual direct manufacturing labor cost). The 2015 budget for the plant is:
Machining Assembly
Manufacturing overhead machining $18,00,000 Assembly $3,600,000
Direct manufacturing labor cost machining $1,400,000 Assembly $2,000,000
Machine-hours machining 50,000 Assembly 200,000
During February, the job cost record for Job 494 contained the following:
Machining Assembly
Direct materials used machining $45,000 Assembly $70,000
Direct manufacturing labor costs machining $14,000 Assembly $515,000
Machine-hours machining 1,000 Assembly 1500
At the end 201 5, the actual manufacturing overhead costs were $2,100,000in Machining
and in Assembly $3,700.000 A total of 55,000 actual machine-hours were used in
Machining and total actual direct manufacturing labor costs in Assembly were $2,200,000
a.establish the predetermined manufacturing overhead rate for each department-
b. show the total cost of Job 494.
c .show the calculation under or over-allocated overhead for each department.
d. let us say that the company uses the write-off to cost of goods sold approach method,
show the journal entries to write off the under or over-allocated overhead for each department
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