Question 2 (Job costing, accounting for manufacturing overhead rates) 25 Marks) The Matthew 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 department overhead, allocated to jobs based on actual machine-hours, and the assembly department overhead, allocated to jobs based on actual direct manufacturing labor costs). The 2017 budget for the plant is as follows: Manufacturing overhead Direct manufacturing labor costs Direct manufacturing labor hours Machine hours Machining Department $1,500,000 $1,600,000 120,000 30,000 Assembly Department $5,100,000 $3,000,000 280,000 270,000 Required: 1.Compute the budgeted manufacturing overhead rate for each department. 2.During February, the job-cost record for Job 494 contained the following: Direct materials used Direct manufacturing labor costs Direct manufacturing labor hours Machine-hours Machining Department $12,000 $15,000 1,100 2.800 Assembly Department $78,000 $19,000 1,300 1.100 Compute the total manufacturing overhead costs allocated to Job 494. Manufacturing overnad Direct manufacturing labor costs Direct manufacturing lahor hours Machine-hours $1,600,000 120,000 30,000 $3,000,000 280,000 270,000 Required: 1.Compute the budgeted manufacturing overhead rate for each department. 2.During February, the job-cost record for lob 494 contained the following: be Direct materials used Direct manufacturing labor costs Direct manufacturing lahor hours Machine-hours Machining Department $12.000 $15.000 1,100 2,800 Assembly Department $78,000 $19,000 1,300 1.100 Compute the total manufacturing overhead costs allocated to Job 494. 3 Header 3.At the end of 2017, the actual manufacturing overhead costs were $1,800,000 in machining and $5,300,000 in assembly. Assume that 33,000 actual machine- hours were used in machining and that actual direct manufacturing labor costs in assembly were $3,200,000 Compute the over or under-allocated manufacturing overhead for each department