Question

The Cassel Company uses a​ job-costing system at its​ Dover, Delaware, plant. The plant has a machining department and a finishing department. Cassel 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 2014 budget for the plant is as​ follows:

Machining Department Finishing Department

Manufacturing overhead costs

$9,890,000

$7,644,000

Direct manufacturing labor costs

$960,000

$3,900,000

Direct manufacturing labor-hours

25,000

145,000

Machine-hours

215,000

36,000

Identify the components of the overview diagram of CasselCassel​'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 $15,500 $2,000 Direct manufacturing labor costs $700 $1,250 Direct manufacturing labor-hours 10 50 Machine-hours 140 25 Compute the total manufacturing overhead cost allocated to Job 431.
4.	Assuming that Job 431 consisted of 100100 units of​ product, what is the cost per​ unit?
5.	Amounts at the end of 20142014 are as​ follows:
	Machining Department Finishing Department Manufacturing overhead incurred $10,320,000 $8,178,000 Direct manufacturing labor costs $1,000,000 $4,300,000 Machine-hours 220,000 31,000 Compute the​ under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole.
6.	Why might CasselCassel use two different manufacturing overhead cost pools in its​ job-costing system?

Answer 1