The Morris Company uses a Job-costing system at one of its plants

The Morris Company uses a Job-costing system at one of its
plants. The plant has a machining department and a
finishing department. The company uses a normal costing
system with two direct-cost categories and two manufacturing
overhead cost pools; the machining department using machine
hours as its allocation base, and the finishing department uses
direct manufacturing labor costs as its allocation base.

The 2013 budget is as follows:
	Machining Department	Finishing Department

Manufacturing Overhead Costs:	$ 10,660,000	$ 7,372,000
Direct Manufacturing Labor Costs:	$ 940,000	$ 3,800,000
Direct Manufacturing Labor-Hours	36,000	145,000
Machine-Hours	205,000	32,000


Question 1: What is the budgeted MOH rate in the machining
department?

Question 2: What is the budgeted MOH rate in the finishing
department?

Given #3: During the month of January, note the following costs
for Job 0113:
	Machining Department	Finishing Department	Total
Direct Materials Used	$ 15,500	$ 5,000
Direct Manufacturing Labor Costs	$ 400	$ 1,100
Direct Manufacturing Labor-Hours	50	50
Machine-Hours	130	20

Question 3: Determine the manufacturing overhead cost
allocated in Jan to each department, and the total MOH.

Question 3a: Determine the total costs for Jan for each
department and the total cost for Job 0113

Question 4: Assuming the Job 0113 consisted of 400 units of
product, what is the cost per unit?

Given #5:	Actual MOH
Actual total MOH for both departments for 2013:	$ 19,706,000
Actual total machine-hours for 2013:	210,000
Actual total direct labor costs for 2013:	$ 4,400,000


Question 5a: What is the total allocated MOH for 2013:
(Budgeted rate times Actual hours or Actual labor costs)

Question 5b:
Given the actual total manufacturing overhead cost for 2013,
determine the under- or over-allocated manufacturing overhead
for Job 0113
(MOH Control is debited for Actual MOH costs)
(MOH Allocated is credited for the total allocated costs)

Question 5c:
If the under- or over-allocated MOH cost for 2013 is written off
completely to COGS, what is the year-end journal entry?
(net the two costs to determine debit or credit to COGS)

The Morris Company uses a Job-costing system at one of its plants

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