Q6(4-31)Job costing, accounting for manufacturing overhead, budgeted rates. The Fasano Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Fasano uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machine hours as the allocation base, and the finishing department with direct manufacturing labor costs as the allocation base). The 2011 budget for the plant is as follows:

Machining Department Finishing Department

Manufacturing overhead costs $10,660,000 $7,372,000

Direct manufacturing labor costs $ 940,000 $3,800,000

Direct manufacturing labor-hours 36,000 145,000

Machine-hours 205,000 32,000

1. What is the budgeted manufacturing overhead rate in the machining department? In the finishing

department?

2. During the month of January, the job-cost record for Job 431 shows the following:

Machining Department Finishing Department

Direct materials used $15,500 $ 5,000

Direct manufacturing labor costs $ 400 $1,1,00

Direct manufacturing labor-hours 50 50

Machine-hours 130 20

Compute the total manufacturing overhead cost allocated to Job 431.

4. Assuming that Job 431 consisted of 400 units of product, what is the cost per unit.

5. Amounts at the end of 2011 are as follows:

Machining Department Finishing Department

Manufacturing overhead incurred $11,070,000 $8,236,000

Direct manufacturing labor costs $1,000,000 $4,400,000

Machine-hours 210,000 31,000

Compute the under- or overallocated manufacturing overhead for each department and for the Dover

plant as a whole.