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 2011 budget for the plant is as follows:

Machining Department Assembly Department

Manufacturing overhead $1,800,000 $3,600,000

Direct manufacturing labor costs $1,400,000 $2,000,000

Direct manufacturing labor-hours 100,000 200,000

Machine-hours 50,000 200,000