Part A: 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: Machining Assembly BUDGET Department Department Annual Manufacturing overhead $1,350,000.00 $ 2,250,000.00 Direct manufacturing labour costs $1,050,000.00 $ 1,875,000.00 Direct manufacturing labour-hours 90,000.00 150,000.00 Machine-hours 45,000.00 175,000.00 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: Machining Assembly ACTUAL COSTS Job 549 Department Department Direct materials used $ 45,000.00 $ 60,000.00 Direct manufacturing labour costs $ 15,000.00 $ 15,000.00 Direct manufacturing labour-hours 750.00 7,500.00 Machine-hours 1,500.00 9,000.00 Calculate- a) the total manufacturing overhead costs allocated to Job 549 [2 marks] b) the total of all costs from each department relating to Job 549 [2 marks] c) the total costs for job 549. [2 marks] 3 At the end of 2023, calculate the over- or under-allocated manufacturing overhead for each department and explain possible causes for the over- or underallocations. [2 + 5 marks] 4 If the actual costs for 2023 were as listed below, a) calculate the Actual Manufacturing Overhead rate for each department. [2 marks] b) use the actual rates to re-allocate for all costs related to Job 549. [3 marks] Machining Assembly ACTUAL 2023 COSTS Department Department Annual Manufacturing overhead $1,500,000.00 $ 2,400,000.00 Direct manufacturing labour costs $1,200,000.00 $ 1,950,000.00 Direct manufacturing labour-hours 105,000.00 170,000.00 Machine-hours 50,000.00 185,000.00 5 With reference to 04., explain why a normal costing system might be used for this company rather than an actual costing system. [5 marks] ##7## Format of calculations [5 marks] Part B: Jabri Ltd manufactures car seats in its Newlands plant. Each car seat passes through the Assembly Department and the Testing Department. This problem focuses on the Assembly Department. The process-costing system at Jabri Ltd has a single direct cost category (direct materials) and a single indirect cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the Assembly Department finishes work on each car seat, it is immediately transferred to Testing. Jabri Ltd uses the weighted-average method of process costing. Data for the Assembly Department for October 2023 are: Physical Units Direct Materials Conversion Work in process, 1 October Degree of completion: conversion costs, 60% 10,000 $1 250,000 $ 550,000 Started during October 2022 42,000 Completed during October 2022 50,000 Work in process, 31 October Degree of completion: conversion costs, ?0% 2,000 Total costs added during October 2022 $6,600,000 $3,300,000 Required: 1 Calculate equivalent units of direct materials and conversion costs. [2 marks] 2 Summarise total costs to account for [2 marks] 3 Calculate the cost per equivalent unit for direct materials and conversion costs. [4 marks] 3 Assign total costs to units completed and to units in ending work in process. [4+4 marks] 4 Explain why the company would be using a process-costing system, rather than a job-costing system. [10 marks] ##l'f Format of calculations [4 marks]