Lowell 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 labor) and two manufacturing overhead cost pools (the machining departmentoverhead, allocated to jobs based on actual machine-hours, and the assembly department overhead, allocated to jobs based on actual direct manufacturing laborcosts). The 2017 budget for the plant is as follows:

Machining Department

Assembly Department

Manufacturing overhead

Machining $1,800,000

Assembly $3,900,000

Direct manufacturing labor costs

Machining $1,000,000

Assembly $3,000,000

Direct manufacturing labor-hours

Machining 160,000

Assembly 200,000

Machine-hours

Machining 60,000

Assembly 200,000

1. Identify the components of the overview diagram of Lowell'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	$78,000
Direct manufacturing labor costs	$18,000	$20,000
Direct manufacturing labor-hours	1,400	1,500
Machine-hours	2,600	1,600

Compute the total manufacturing overhead costs allocated to Job 494.

3. At the end of 2017, the actual manufacturing overhead costs were $2,100,000

in machining and $5,300,000 in assembly. Assume that 66,000 actual machine-hours were used in machining and that actual direct manufacturing labor costs in assembly were $3,300,000.

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