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

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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:

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:

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:

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?