Giannacopoulos SA uses a job-costing system at its Korinthos 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, and the Assembly Department, allocated using actual labour cost). The 2023 budget for the plant is as follows:

Required 1 Present an overview diagram of Giannacopoulos’s job-costing system. What is the budgeted overhead rate that should be used in the Machining Department? In the Assembly Department?
2 During the month of February, the cost record for Job 494 shows the following:

What is the total manufacturing overhead allocated to Job 494?

3 Balances at the end of 2023 are as follows:

Calculate the under- or overallocated manufacturing overhead for each department.

Transcribed Image Text:

Manufacturing overhead Direct manufacturing labour cost Direct manufacturing labour-hours Machine-hours Machining Department 1 800 000 1 400 000 100 000 50 000 Assembly Department 3 600 000 2 000 000 200 000 200.000