The Matthew 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:

Machining department assembly department

manufacturing overhead $1500000 $ 5100000

Direct manufacturing labor cost $ 160000 $ 3000000

Direct manufacturing labor 120000 280000

Machine hours 30000 270000

Required:

1.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 $42 000 $ 78 000

Direct manufacturing labor cost $ 150000 $ 19 000

Direct manufacturing labor 1 11 00 1300

Machine hours 2800 1100

Compute the total manufacturing overhead costs allocated to Job 494.

3.At the end of 2017, the actual manufacturing overhead costs were $1,800,000 in machining and $5,300,000 in assembly. Assume that 33,000 actual machine-hours were used in machining and that actual direct manufacturing labor costs in assembly were $3,200,000.

Compute the over orunder-allocated manufacturing overhead for each department.