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Interesting Figures Company produces porcelain figurines

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Problem 2:  Job Costing Problem

Interesting Figures Company produces porcelain figurines. The production is semi-automated where the figurines are molded almost entirely by machines only, and then the figurines are hand painted.  The company uses a normal costing system and possesses two direct cost categories as well as two manufacturing overhead cost pools; the Molding Department uses machine-hours  as its allocation base, and the Painting Department uses direct manufacturing labor-hours as its allocation base.

The 2016 Budget is as follows:
Molding Department Painting Department
Manufacturing Overhead Costs  $          6,200,000  $           4,450,000
Direct Manufacturing Labor costs  $              860,000  $           3,500,000
Direct Manufacturing Labor hours                     35,800                   125,000
Machine-hours                  129,000
Question 1:  What is the budgeted MOH rate in the Molding Dept?  $                   48.06
Question 2:  What is the budgeted MOH rate in the Painting Dept? 127%
Given #3:  During the month of May 2016, note the following costs
for Job#52016.
Molding Department Painting Department Total
Direct Materials used:  $              325,000  $                 83,000
Direct Manufacturing Labor Costs  $                71,500  $              290,000
Direct Manufacturing Labor hours                       2,980                     10,360
Machine-hours                     10,600
Question 3a:  Determine the Manufacturing Overhead Costs allocated  $              509,457  $              368,714  $             878,172
in May 2016 to each Department as well as Total MOH costs.
Question 3b:  Determine the total costs for May 2016 for each  $              905,957  $              741,714  $          1,647,672
Department as well as the Total Costs for both Departments.
Given #4: Actual
Actual total MOH costs for both Departments for 2016:  $        11,350,000
Actual total machine-hours for 2016:                  131,000
Acutal total direct labor hours for 2016:                  157,000
 Molding Department Painting Department Total
Question 4:  Determine the total allocated MOH costs for each  $          6,296,124  $              199,614  $          6,495,738
department and the total for 2016?
Question 5a: Given the total allocated MOH cost for 2016, determine whether MOH
manufacturing is over-or under-allocated.  $        11,350,000  $          6,495,738
 $           4,854,262
Question 5b:  If the over- or under-allocated MOH costs for 2016 is  COGS  $          4,854,262
written off completely to COGS, prepare the year-end journal Entry MOH  $  4,854,262
and the T-account for MOH.

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