The Lynn 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 2014 budget for the plant is as follows

	Machining department	Assembly Department
Manufacturing overhead	$2,100,000	$3,900,000
Direct manufacturing labor costs	$1,200,000	$3,000,000
Direct manufacturing labor-hours	160,000	280,000
Machine-hours	70,000	280,000

1.

Identify the components of the overview diagram of

LynnLynn'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	$46,000	$77,000
Direct manufacturing labor costs	$13,000	$17,000
Direct manufacturing labor-hours	1,300	1,700
Machine-hours	2,200	1,600

Compute the total manufacturing overhead costs allocated to Job 494.

3.

At the end of

20142014,

the actual manufacturing overhead costs were

$2,300,000

in machining and

$5,500,000

in assembly. Assume that

76,000

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

$3,100,000.

Compute the over- or underallocated manufacturing overhead for each department