The Cassel Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Cassel 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 2014 budget for the plant is as follows:

Machining Department Finishing Department

Manufacturing overhead costs

$9,890,000

$7,644,000

Direct manufacturing labor costs

$960,000

$3,900,000

Direct manufacturing labor-hours

25,000

145,000

Machine-hours

215,000

36,000

Identify the components of the overview diagram of

CasselCassel's

job-costing system.

2.

What is the budgeted manufacturing overhead rate in the machining department? In the finishingdepartment?

3.

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

	Machining Department			Finishing Department
Direct materials used		$15,500			$2,000
Direct manufacturing labor costs		$700			$1,250
Direct manufacturing labor-hours		10			50
Machine-hours		140			25

Compute the total manufacturing overhead cost allocated to Job 431.

4.

Assuming that Job 431 consisted of

100100

units of product, what is the cost per unit?

5.

Amounts at the end of

20142014

are as follows:

	Machining Department			Finishing Department
Manufacturing overhead incurred		$10,320,000			$8,178,000
Direct manufacturing labor costs		$1,000,000			$4,300,000
Machine-hours		220,000			31,000

Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole.

6.

Why might

CasselCassel

use two different manufacturing overhead cost pools in its job-costing system?