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The Lulu Company uses a normal job-costing system at its Minneapolis plant. The plant has...

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Accounting

The Lulu 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 $1,800,000 $5,100,000

Direct manufacturing labor costs $1,000,000 $3,000,000

Direct manufacturing labor-hours 140,000 260,000 Machine-hours 60,000 260,000

Machining Department Assembly Department Direct material used $44,000 $72,000

Direct manufacturing labor costs $11,000 $15,000

Machining Department Assembly Department Direct material used $44,000 $72,000 Direct manufacturing labor costs $11,000 $15,000 Direct manufacturing labor-hours 1,100 1,300 Machine-hours 2,800 1,600

Direct manufacturing labor-hours 1,100 1,300 Machine-hours 2,800 1,600

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