Just need help with requirement 3 please and thank you. Please show the full solutions it would be greatly appreciated thanks so much and have a nice day!

The Lawrence 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 manufacturing labour) 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 labour costs). The yearly budget for the plant is as follows:

Required

1.

Identify the components of the overview diagram of Lawrence'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:

	Machining Department	Assembly Department
Direct material used	$48,000	$72,000
Direct manufacturing labour costs	$15,000	$16,000
Direct manufacturing labour-hours	1,700	1,800
Machine-hours	2,600	1,300

Compute the total manufacturing overhead costs allocated to Job 494.

3.

At the end of the year, the actual manufacturing overhead costs were $2,100,000 in machining and $5,500,000 in assembly. Assume that 54,000 actual machine-hours were used in machining and that actual direct manufacturing labour costs in assembly were $3,200,000. Compute the over- or underallocated manufacturing overhead for each department.

Enter the formula, and then enter the budgeted manufacturing overhead and cost allocation bases to solve for the budgeted manufacturing overhead rate for each department. (Enter the percentage result as a whole percentage. Abbreviations used: manuf. = manufacturing, DM = direct manufacturing.)

Budgeted manuf. overhead

/

Budgeted cost allocation base

=

Budgeted manufacturing overhead rate

Machining	$2,000,000	/	$50,000	=	$40	per machine hour
Assembly	$5,400,000	/	$3,000,000	=	180	% of DM labour costs

Requirement 2.

Job cost record

	Machining Department	Assembly Department
Direct material used	$48,000	$72,000
Direct manufacturing labour costs	$15,000	$16,000
Direct manufacturing labour-hours	1,700	1,800
Machine-hours	2,600	1,300

Review the February job-cost record for Job 494. Compute the total manufacturing overhead costs allocated to Job 494. (Abbreviations used: MOH = manufacturing overhead.)

Enter the formula to calculate the manufacturing overhead to allocate to a job.

Budgeted overhead rate

x

Actual cost allocation base

=

MOH allocated to job

Compute the total manufacturing overhead costs allocated to Job 494. (Do not round intermediary calculations.)

	MOH allocated to job
Machining overhead	$104,000
Assembly overhead	$28,800
Total manufacturing costs allocated to job 494	$132,800

Requirement 3. At the end of the year, the actual manufacturing overhead costs were $2,100,000 in machining and $5,500,000 in assembly. Assume that 54,000 actual machine-hours were used in machining and that actual direct manufacturing labour costs in assembly were $3,200,000.

Compute the over- or underallocated manufacturing overhead for each department.

Enter the formula and compute the over- or underallocated manufacturing overhead for the year for each department. (Use parentheses or a minus sign to report manufacturing overhead overallocated. Abbreviations used: manuf. = manufacturing.)

Actual manufacturing overhead

Allocated manufacturing overhead

=

Underallocated (Overallocated)

Machining	2100000		?	=	?
Assembly	5500000		?	=	?