Lynn Company uses a job-costing system at its Mississauga plant. The plant has a Machining Department and an Assembly Department. Its job-costing system has two direct cost categories (direct materials and direct manufacturing labour) and two manufacturing overhead cost pools (the Machining Department, allocated using actual machine-hours (MH), and the Assembly Department, allocated using actual direct manufacturing labour cost). The 2016 budget for the plant is as follows:

Machining Department Assembly Department

Manufacturing overhead (MOH)............$1,800,000.....................$3,600,000

Direct manufacturing labour cost............$1,400,000.....................$2,000,000

Direct manufacturing labour-hours (DMLH)...100,000.........................200,000

Machine-hours (MH)................................50,000.........................200,000

The company uses a budgeted overhead rate for allocating overhead to production orders on a machine-hour basis in Machining and on a direct-manufacturing-labour-cost basis in Assembly.

Required

1. During February, the cost record for Job 494 contained the following:

Machining DepartmentAssembly Department

Direct materials used...........................$45,000...........................$70,000

Direct manufacturing labour cost.............$14,000...........................$15,000

Direct manufacturing labour-hours...............1,000..............................1,500

Machine-hours (MH)..............................2,000 .............................1,000

Compute the total manufacturing overhead costs of Job 494.

2. At the end of 2016, the actual manufacturing overhead costs were $1,900,000 in Machining and $4,000,000 in Assembly. Assume that 55,000 actual machine-hours were used in Machining and that actual direct manufacturing labour costs in Assembly were $2,200,000. Compute the over allocated or under allocated manufacturing overhead for each department.