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 directcost 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 2019 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 2019 are as follows:

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

Transcribed Image Text:

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