4,2

The

Maclin

Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department.

Maclin

uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The

2020

budget for the plant is as follows:

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2020

budget.)

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requirements

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Part 1

Requirement 1. Identify the components of the overview diagram of

Maclin's

job-costing system. (Abbreviations used: Manuf. = Manufacturing.)

The

Maclin

Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department.

Maclin

uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the machining department with machine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The

2020

budget for the plant is as follows:

LOADING...

(Click

the icon to view the

2020

budget.)

Read the

requirements

LOADING...

.

Question content area bottom

Part 1

Requirement 1. Identify the components of the overview diagram of

Maclin's

job-costing system. (Abbreviations used: Manuf. = Manufacturing.)

A	}	B	C	A B C
D	}	E	F	D E F

G

}

H I

G H I

J

}

K

L

Requirements

1. Identify the components of the overview diagram of

Maclin's

job-costing system.

2. What is the budgeted manufacturing overhead rate in the machining department? In the finishing department?

3. During the month of January, the job-cost record for Job 431 shows the following:

	Machining Department	Finishing Department
Direct materials used	$13,500	$4,500
Direct manufacturing labor costs	$500	$1,300
Direct manufacturing labor-hours	20	70
Machine-hours	100	20

Compute the total manufacturing overhead cost allocated to Job 431.

4. Assuming that Job 431 consisted of

200

units of product, what is the cost per unit?

5. Amounts at the end of

2020

are as follows:

	Machining Department	Finishing Department
Manufacturing overhead incurred	$13,160,000	$8,670,000
Direct manufacturing labor costs	$1,020,000	$4,500,000
Machine-hours	240,000	31,000

Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole.

6. Why might

Maclin

use two different manufacturing overhead cost pools in its job-costing system?

Data table

	Machining Department	Finishing Department
Manufacturing overhead costs	$10,530,000	$7,644,000
Direct manufacturing labor costs	$910,000	$3,900,000
Direct manufacturing labor-hours	35,000	155,000
Machine-hours	195,000	33,000