The Lawrence 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:

1. Identify the components of the overview diagram of

Lawrence's

job-costing system. Compute the budgeted manufacturing overhead rate for each department.

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

	Machining Department	Assembly Department
Direct material used	$41,000	$74,000
Direct manufacturing labor costs	$14,000	$20,000
Direct manufacturing labor-hours	1,500	1,700
Machine-hours	2,500	1,100

Compute the total manufacturing overhead costs allocated to Job 494.

3. At the end of

2017,

the actual manufacturing overhead costs were

$2,000,000

in machining and

$5,300,000

in assembly. Assume that

46,000

actual machine-hours were used in machining and that actual direct manufacturing labor costs in assembly were

$3,200,000.

Compute the over- or underallocated manufacturing overhead for each department.

Machining Department

Assembly Department

Manufacturing overhead

$1,200,000

$5,100,000

Direct manufacturing labor costs

$1,500,000

$3,000,000

Direct manufacturing labor-hours

140,000

240,000

Machine-hours

40,000

240,000