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 2017 budget for the plant is as follows: (Click the icon to view the 2017 budget.) Read the requirements H G } G Cost Object: Job H Indirect Costs 1 Direct Costs J } Direct Costs K Direct Materials L Direct Manufacturing Labor Requirement 2. What is the budgeted manufacturing overhead rate in the machining department? In the finishing department? Determine the formula, then compute the budgeted overhead rates for the machining department and finishing department Budgeted overhead rate Machining Finishing % Data Table $ $ Manufacturing overhead costs Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Machining Department 9,890,000 960,000 35,000 Finishing Department $ 8,217,000 $ 4,150,000 170,000 36,000 eme 215,000 ment? inet it. Print Done rhead rate 1. Identify the components of the overview diagram of Cassel's job-costing system. 2. What is the budgeted manufacturing overhead rate in the machining department? In the finishing department? 3. During the month of January, the job-cost record for Job 431 shows the following: Machining Department Finishing Department Direct materials used $ 13,000 $ 2,000 Direct manufacturing labor costs $ 700 $ 1,200 Direct manufacturing labor-hours 40 70 Machine-hours 160 15 Compute the total manufacturing overhead cost allocated to Job 431. 4. Assuming that Job 431 consisted of 100 units of product, what is the cost per unit? 5. Amounts at the end of 2017 are as follows: Machining Department Finishing Department Manufacturing overhead incurred $ 10,020,000 $ 8,958,000 Direct manufacturing labor costs $ 1,000,000 $ 4,600,000 Machine-hours 220,000 32,000 Compute the under-or overallocated manufacturing overhead for each department and for the Dover plant as a whole. 6. Why might Cassel use two different manufacturing overhead cost pools in its job-costing system? L? d ral 1 %