The Bennett Company uses a job-costing system at itsDover, Delaware, plant. The plant has a machining department and a finishing department. Bennett uses normal costing with twodirect-cost categories (direct materials and direct manufacturinglabor) 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 allocationbase). The 2017 budget for the plant is asfollows:

Machining Department Finishing Department
Manufacturing overhead costs $ 9,065,000 $ 8,058,000
Direct manufacturing labor costs $ 950,000 $ 3,950,000
Direct manufacturing labor-hours 32,000 145,000
Machine-hours 185,000 35,000
Question:

1. Identify the components of the overview diagram of Bennett'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 $ 4,000
Direct manufacturing labor costs $ 800 $ 1,400
Direct manufacturing labor-hours 20 70
Machine-hours 100 15
Compute the total manufacturing overhead cost allocated to Job 431.

4. Assuming that Job 431 consisted of 100 units ofproduct, what is the cost per unit?

5. Amounts at the end of 2017 are asfollows:

Machining Department Finishing Department
Manufacturing overhead incurred $ 12,010,000 $ 9,184,000
Direct manufacturing labor costs $ 980,000 $ 4,600,000
Machine-hours 240,000 33,0000
Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole.

6. Why might Bennett use two different manufacturing overhead cost pools in its job-costing system?

Explanation:

1) is attached below

2)  Budgeted manufacturing overhead rate :    

In Machining Department = Manufacturing overhead cost / Machine hrs  

= $9065000 /185,000 = $49 per machine hour    

In Finishing Department = Manufacturing overhead cost / Direct Manufacturing labor cost  

= $8,058000 / $3950,000 = 2.04    

3)  Machining Department overhead = $20 per machine hr * 100 hrs

= $2000    

Finishing Department overhead = $1400 * 204% = $2856    

Total manufacturing overhead = $4856    

4).Total costs of Job 431:    

Direct material - Machining Department = $14500    

                     - Finishing Department = $4000    

Direct manufacturing labor - Machining Department = $800    

                                     - Finishing Department = $1400    

Manufacturing overhead = $4856    

Total Cost = $25556    

Cost per unit = $25556 / 100 = $255.56    

5)    

Actual manufacturing overhead              machining                 finishing  

Actual manufacturing overhead              $12,010,000        $9,184,000  

Manufacturing overhead allocated      $11,760,000       $9,384,000  

                                                                    ($49×240,000)(204%×4600,000)  

Under allocated(over allocated)               $250,000           $(200,000.00)  

For plant as whole:    

(12,010,000+$9184,000)-(11760,000+$9384,000)    

50000 Under applied.    

6) In machining department main focal points is machines , so machine hours is selected for this.In finishing department, labor cost is key area.so it is selected by the company .In both department key area is different so different cost drivers are selected for both departments.  

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answer; how many employees will be needed for jobs in the coming period;