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2. Job costing, accounting for manufacturing overhead, budgeted rates. Giannacopoulos SA uses a job-costing system at its Korinthos 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 labour) and two manufacturing overhead cost pools (the Machining Department, allocated using actual machine-hours, and the Assembly Department, allocated using actual labour cost). The 2011 budget for the plant is as follows: Machining Department Assembly Department Manufacturing overhead 1 800 000 3 600 000 Direct manufacturing labour cost 1 400 000 2 000 000 Direct manufacturing labour-hours 100 000 200 000 Machine-hours 50 000 200 000 Required: 1 Present an overview diagram of Giannacopoulos's job-costing system. What is the budgeted overhead rate that should be used in the Machining Department? In the Assembly Department? 2 During the month of February, the cost record for Job 494 shows the following: Machining Department Assembly Department Direct material used 45 000 70 000 Direct manufacturing labour cost 14 000 15 000 Direct manufacturing labour-hours 1 000 1 500 Machine-hours 2 000 1 000 What is the total manufacturing overhead allocated to Job 494? 3 Balances at the end of 2011 are as follows: Machining Department Assembly Department Manufacturing overhead incurred 2 100 000 3 700 000 Direct manufacturing labour cost 2 200 000 Machine-hours 55 000 Calculate the under- or overallocated manufacturing overhead for each department