SHU Manufacturing currently allocates manufacturing overhead costs using direct labor costs. D. Shim, a controller argues for departmental cost driver rates to allocate manufacturing overhead costs to products. For department overhead rates, manufacturing overhead costs are allocated on the basis of machine hours in the Machining Department and on the basis of direct labor hours in the Assembly Department. At the beginning of 20X3, the following estimates were provided for the coming year.

Machining Assembly

Direct Labor Hours 30,000 60,000

Machine Hours 80,000 20,000

Direct Labor Cost $500,000 $900,000

Manufacturing Overhead Costs $420,000 $240,000

During the month of March, The accounting records of the company show the following data for Job #316

Machining Assembly

Direct labor-hours 120 70

Machine-hours 60 5

Direct material cost $300 $200

Direct labor cost $100 $400

For SHU Manufacturing

Compute the current manufacturing overhead rate?

What are the total manufacturing costs of Job #316?

For Department Overhead Rate

Compute the manufacturing overhead rate for each department

What amount of manufacturing overhead costs will be allocated to Job #316?

Amounts at the end of 20X3 are as follows:

Machining Assembly

Direct labor-hours 30,000 55,000

Machine-hours 85,000 20,000

Direct labor cost $500,000 $900,000

Manufacturing overhead costs incurred $450,000 $200,000

Compute the under or over allocated manufacturing overhead for each department and for the whole plant.

SHU Manufacturing currently allocates manufacturing overhead costs using direct labor costs. D. Shim, a controller argues for departmental cost driver rates to allocate manufacturing overhead costs to products. For department overhead rates, manufacturing overhead costs are allocated on the basis of machine hours in the Machining Department and on the basis of direct labor hours in the Assembly Department. At the beginning of 20X3, the following estimates were provided for the coming year.

Machining Assembly

Direct Labor Hours 30,000 60,000

Machine Hours 80,000 20,000

Direct Labor Cost $500,000 $900,000

Manufacturing Overhead Costs $420,000 $240,000

During the month of March, The accounting records of the company show the following data for Job #316

Machining Assembly

Direct labor-hours 120 70

Machine-hours 60 5

Direct material cost $300 $200

Direct labor cost $100 $400

For SHU Manufacturing

a.Compute the current manufacturing overhead rate?

b.What are the total manufacturing costs of Job #316?

For Department Overhead Rate

a.Compute the manufacturing overhead rate for each department

b.What amount of manufacturing overhead costs will be allocated to Job #316?

Amounts at the end of 20X3 are as follows:

Machining Assembly

Direct labor-hours 30,000 55,000

Machine-hours 85,000 20,000

Direct labor cost $500,000 $900,000

Manufacturing overhead costs incurred $450,000 $200,000

Compute the under or over allocated manufacturing overhead for each department and for the whole plant.