The Kristopiier Company uses a job-costing system at its 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 cm

actual direct manufacturing labor cost). The 2015 budget for the plant is:

Machining Assembly

Manufacturing overhead machining $18,00,000 Assembly $3,600,000

Direct manufacturing labor cost machining $1,400,000 Assembly $2,000,000

Machine-hours machining 50,000 Assembly 200,000

During February, the job cost record for Job 494 contained the following:

Machining Assembly

Direct materials used machining $45,000 Assembly $70,000

Direct manufacturing labor costs machining $14,000 Assembly $515,000

Machine-hours machining 1,000 Assembly 1500

At the end 201 5, the actual manufacturing overhead costs were in Machining

and in Assembly A total of 55,000 actual machine-hours were used in

Machining and total actual direct manufacturing labor costs in Assembly were $2,200,000

a. establish the predetermined manufacturing overhead rate for each department-

b. show the total cost of Job 494.

c .show the calculation under or over-allocated overhead for each department.

d. let us say that the company uses the write-off to cost of goods sold approach method,

show the journal entries to write off the under or over-allocated overhead for each department

department.