Question
Nylle Ltd uses a job-costing system at its Melbourne furniture plant. The plant has a Machining Department and an Assembly Department. Its job-costing system has
Nylle Ltd uses a job-costing system at its Melbourne furniture 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 2023 budget for the plant is: BUDGET Machining Department Assembly Department Annual Manufacturing overhead $2,000,000.00 $ 3,200,000.00 Direct manufacturing labour costs $1,500,000.00 $ 2,100,000.00 Direct manufacturing labour-hours 120,000.00 220,000.00 Machine-hours 55,000.00 220,000.00 Required: 1 Calculate the budgeted manufacturing overhead rate for each department. [2 marks] 2 During February, the job-cost record for Job 549 contained the following:
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