The sumbo paint company uses a job costing system at its main road plant . The plant has a machining department and finishing department . Its job costing system has 1)Two direct costing categories:

- Direct labor

- Direct manufacturing

2) Two manufacturing overhead cost pools:

- The machining department ,allocated using machine hours and

- The finishing department ,allocated using manufacturing labor costs.

The 2015 budget for the plant is :

Machining Dept. Finishing Dept.

Manufacturing overhead $10,000,000 $8, 000, 0000

Direct manufacturing labor cost $900,000 $4,000,000

Direct manufacturing labor hrs $30,000 $160,000

Machine hours 200,000 33,000

Required : a)what is the budget overhead rate that should be used in the machinery department ?In the finishing department? During the month of january 2015, the cost recorded for the job 430 shows as follows :

Machining Dept. Finishing Dept.

Direct material used $14,000 $3,000

Direct manufacturing labor cost $6,000 $1,250

Direct manufacturing labor hrs $30 $50

Machine hours 130 10

b) What is the total maufacturing overhead allocated to job 430?

c)Assuming that job 430 consisted of 20 units of product, what is the unit product cost? Balances at the end of 2015 are as follows :

Machining Dept. Finishing Dept.

Manufacturing overheads incurred $11,200,000 $7,900,000

Direct manufacturing labor cost $950,000 $4,100,000

Machine hours 220,000 $32,000 Required:

d) Compute the manufacturing overhead varience for each department and for the main Road plant as a whole