Question 8 The Sammy Company uses a job costing system at its Alware plant. The plant has a machinine department. Its job costing system has two direct cost categories (direct materials and direct enufacturing labour) and alflocated using machine hours and the finishing department allocate labour costs). The 2002 budget for the plant is: two manufacturing overhead cost pools (the machining department d using manufacturing Machining Dept. Manufactured Overhead Direct manufacturing labour cost Direct manufacturing labour hours Machine hours $10,000,000o 900,000 30,000 200,000 Finishing Dept $8,000,000 $4,000,000 160,000 33,000 a) What is the budgeted overhead rate that should be used in the machinery and the finishing departments? (6 marks) b) During the month of January, the cost record for job 400 shows the following Finishing $3,000 $1,250 Machinery Dept. Dept Direct material used Direct manufacturing labour Direct manufacturing labour hours Machine hours $14,000 600 costs 130 What is the total manufacturing overhead allocated to job 400? (4 marks) ol d) Assuming that job 400 consisted of 20 units of product, what is the product cost per unit? (9 marks) Balances at the end of 2002 are as follows: Machinery Dept Finishing Dept $11,200,000 $ 950,000 $7,900,000 $4,100,000 32,000 Direct material used Direct manufacturing labour costs 220,000 Machine hours Compute the under applied or over applied manufacturing overhead for either the Machinery Dept. Or Finishing Dept. (6 marks) THE END