Paddys Ltd uses a job-costing system at its Albany plant. The plant has two departments,Machining Department and Finishing Department. Paddys Ltd uses normal costing with twodirect cost categories (direct materials and direct manufacturing labour) and two overhead costpools (the Machining Department with machine hours as the allocation base, and the FinishingDepartment with direct manufacturing labour costs as the allocation base). The 2024 budgetfor the plant is as follows:MachiningDepartmentFinishingDepartmentManufacturing overhead $10 000 000 $8 000 000Direct manufacturing labour costs $900 000 $4 000 000Direct manufacturing labour hours 30 000 60 000Machine hours 200 000 33 000 What is the budgeted overhead rate in the Machining Department? What is the budgeted overhead rate in the Finishing Department During the month of January, the job cost record for Job 431 shows the following:MachiningDepartmentFinishingDepartmentDirect materials used $14 000 $3 000Direct manufacturing labour costs $600 $1 250Direct manufacturing labour hours 30 50Machine hours 130 10Required: This part costs the job using the budgeted rates x actual allocation based usedby job in each department.1. Calculate the total manufacturing overhead cost allocated to Job 431 using thebudgeted overhead rates calculated in Part 1 If Job 431 consists of 200 units of product, what is the product cost per unit? Part 3Actual amounts on record at the end of 2024 are as follows:MachiningDepartmentFinishingDepartmentManufacturing overhead incurred $11,200,000 $7,900,000Direct manufacturing labour costs $950,000 $4,100,000Machine hours 220,000 32,000Required: This part calculates the over or underallocation of MOH for the whole year1. Calculate the under-allocated or over-allocated manufacturing overhead for eachdepartment and in total for the Albany plant. Part 3Actual amounts on record at the end of 2024 are as follows:MachiningDepartmentFinishingDepartmentManufacturing overhead incurred $11,200,000 $7,900,000Direct manufacturing labour costs $950,000 $4,100,000Machine hours 220,000 32,000Required: This part calculates the over or underallocation of MOH for the whole year1. Calculate the under-allocated or over-allocated manufacturing overhead for eachdepartment and in total for the Albany plant. explain it in the easiest form using formulas
Paddys Ltd uses a job-costing system at its Albany plant. The plant has two departments,
Machining Department and Finishing Department. Paddys Ltd uses normal costing with two
direct cost categories (direct materials and direct manufacturing labour) and two
pools (the Machining Department with machine hours as the allocation base, and the Finishing
Department with direct manufacturing labour costs as the allocation base). The 2024 budget
for the plant is as follows:
Machining
Department
Finishing
Department
Manufacturing overhead $10 000 000 $8 000 000
Direct manufacturing labour costs $900 000 $4 000 000
Direct manufacturing labour hours 30 000 60 000
Machine hours 200 000 33 000
What is the budgeted overhead rate in the Machining Department?
What is the budgeted overhead rate in the Finishing Department
During the month of January, the job cost record for Job 431 shows the following:
Machining
Department
Finishing
Department
Direct materials used $14 000 $3 000
Direct manufacturing labour costs $600 $1 250
Direct manufacturing labour hours 30 50
Machine hours 130 10
Required: This part costs the job using the budgeted rates x actual allocation based used
by job in each department.
1. Calculate the total manufacturing overhead cost allocated to Job 431 using the
budgeted overhead rates calculated in Part 1
If Job 431 consists of 200 units of product, what is the product cost per unit?
Part 3
Actual amounts on record at the end of 2024 are as follows:
Machining
Department
Finishing
Department
Manufacturing overhead incurred $11,200,000 $7,900,000
Direct manufacturing labour costs $950,000 $4,100,000
Machine hours 220,000 32,000
Required: This part calculates the over or underallocation of MOH for the whole year
1. Calculate the under-allocated or over-allocated manufacturing overhead for each
department and in total for the Albany plant.
Part 3
Actual amounts on record at the end of 2024 are as follows:
Machining
Department
Finishing
Department
Manufacturing overhead incurred $11,200,000 $7,900,000
Direct manufacturing labour costs $950,000 $4,100,000
Machine hours 220,000 32,000
Required: This part calculates the over or underallocation of MOH for the whole year
1. Calculate the under-allocated or over-allocated manufacturing overhead for each
department and in total for the Albany plant.
explain it in the easiest form using formulas
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