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##### The Pisano Company_Job costing, accounting for manufacturing overhead, budgeted rates.

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Question;4-31;Job costing, accounting for manufacturing overhead;budgeted rates.;The Pisano Company uses a;job-costing system at its Dover, Delaware, plant. Pisano 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 finished 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;\$9,065,000;\$8,181,000;Direct Manufacturing labor;costs;\$970,000;\$4,050,000;Direct manufacturing labor;hours;36,000;155,000;Machine hours;185,000;37,000;1.;Prepare an;overview diagram of Pisano?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;\$13,000;\$5,000;Direct manufacturing labor;costs;\$900;\$1,250;Direct manufacturing labor;hours;20;70;Machine hours;140;20;Compute;the total manufacturing overhead cost allocated to job 431.;4.;Assuming that job;431 consisted of 300 units of product, what is the cost per unit?;5.;Amounts at the;end of 2014 are as follows;Machining;Department;Finishing;Department;Manufacturing overhead incurred;\$10,000,000;\$7,982,000;Direct manufacturing labor costs;\$1,030,000;\$4,100,000;Machine hours;200,000;34,000;Compute the;under or overallocated manufacturing overhead for each department and for the;Dover plant as a whole.;6.;Why might Pisano;use two different manufacturing overhead cost pools in its job-costing system?

Paper#37417 | Written in 18-Jul-2015

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