The Carlson Company uses a job- costing system at its Dover, Delaware, plant. The plant has a machining department and a finishing department. Carlson 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 2012 budget for the plant is as follows:

Required
1. Prepare an overview diagram of Carlson’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 100 units of product, what is the cost per unit?
5. Actual amounts at the end of 2012 are as follows:

Compute the under- or overallocated manufacturing overhead for each department and for the Dover plant as a whole.
6. Why might Carlson use two different manufacturing overhead cost pools in its job- costingsystem?

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Machining Department $9,870,000 $980,000 Finishing Department Manufacturing overhead costs Direct manufacturing labor costs Direct manutacturing labor-hours Machine-hours $7,644,000 $3,900,000 170,000 33,000 32,000 210,000 Machining Department Finishing Department Direct materials used Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours $13,000 $700 20 110 $3,500 $1,450 60 15 Manufacturing overhead incurred Direct manufacturing labor costs Machine-hours Machining Department $11,380,000 $1,030,000 Finishing Department $8,628,000 $4,300,000 240,000 30,000