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Q6(4-31) Job costing, accounting for manufacturing overhead, budgeted rates. The Fasano Company uses a job-costing system at its Dover, Delaware, plant The plant has a machining department and a finishing department. Fasano 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 2011 budget for the plant is as follows: Machining Department Finishing Department Manufacturing overhead costs $10,660,000 $7,372,000 Direct manufacturing labor costs $ 940,000 $3,800,000 Direct manufacturing labor-hours 36,000 145,000 Machine-hours 205,000 32,000 1. What is the budgeted manufacturing overhead rate in the machining department? In the finishing department? 2. During the month of January, the job-cost record for Job 431 shows the following: Direct materials used Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Machining Department $15,500 $ 400 50 130 Finishing Department $5,000 $1,1,00 50 20 Compute the total manufacturing overhead cost allocated to Job 431. 4. Assuming that Job 431 consisted of 400 units of product, what is the cost per unit? 5. Amounts at the end of 2011 are as follows: Machining Department Finishing Department Manufacturing overhead incurred $11,070,000 $8,236,000 Direct manufacturing labor costs $1,000,000 $4,400,000 Machine-hours 210,000 31,000 Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole

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