The Lulu 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 2020 budget for the plant is as follows:

	Machining Department	Assembly Department
Manufacturing overhead	$1,800,000	$4,000,000
Direct manufacturing labor costs	$1,400,000	$2,000,000
Direct manufacturing labor-hours	180,000	250,000

Machine-hours 50,000 250,000

1. Identify the components of the overview diagram of Lulus 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 materials used	$45,000	$74,000
Direct manufacturing labor costs	$19,000	$20,000
Direct manufacturing labor-hours	1,400	1,800

Machine-hours 2,100 1,100

3. Compute the total manufacturing overhead costs allocated to Job 494.

4. At the end of 2020, the actual manufacturing overhead costs were $2,000,000 in machining and $4,100,000 in assembly. Assume that 54,000 actual machine-hours were used in machining and that actual direct manufacturing labor costs in assembly were $2,300,000. Compute the under or overallocated manufacturing overhead for each department.