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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 twodirect-cost categories (direct materials and direct manufacturinglabor) and two manufacturing overhead cost pools (the machining department withmachine-hours as the allocation base and the finishing department with direct manufacturing labor costs as the allocation base). The 2017 budget for the plant is asfollows:
Machining Department
Finishing Department
Manufacturing overhead costs
$9,180,000
$8,181,000
Direct manufacturing labor costs
$920,000
$4,050,000
Direct manufacturing labor-hours
34,000
150,000
Machine-hours
180,000
37,000
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 finishingdepartment?
3. During the month of January, the job-cost record for Job 431 shows the following:
Machining Department
Finishing Department
Direct materials used
$14,500
$4,500
Direct manufacturing labor costs
$700
$1,400
Direct manufacturing labor-hours
30
70
Machine-hours
130
15
Compute the total manufacturing overhead cost allocated to Job 431.
4. Assuming that Job 431 consisted of 100 units of product, what is the cost per unit?
5. Amounts at the end of 2017 are asfollows:
Machining Department
Finishing Department
Manufacturing overhead incurred
$10,350,000
$8,432,000
Direct manufacturing labor costs
$1,000,000
$4,100,000
Machine-hours
200,000
33,000
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?
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The Maclin Company uses a job-costing system at its Dover, Delaware, plant. The plant has a machinin...
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