Job costing, accounting for manufacturing overhead, budgeted rates. The Lynn Company uses a normal job-costing system at its Minneapolis 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 labor) and two manufacturing overhead cost pools (the machining department overhead, allocated to jobs based on actual machine-hours, and the assembly department overhead, allocated to jobs based on actual direct manufacturing labor costs). The 2011 budget for the plant is as follows:

Â	Machining Department	Assembly Department
Manufacturing overhead	$1,800,000	$3,600,000
Direct manufacturing labor costs	$1,400,000	$2,000,000
Direct manufacturing labor-hours	100,000	200,000
Machine-hours	50,000	200,000

1. Present an overview diagram of Lynn’s job-costing system. Compute the budgeted manufacturing overhead rate for each department.

2. During February, the job-cost record for Job 494 contained the following:

Â	Machining Department	Assembly Department
Direct materials used	$45,000	$70,000
Direct manufacturing labor costs	$14,000	$15,000
Direct manufacturing labor-hours	1,000	1,500
Machine-hours	2,000	1,000

Compute the total manufacturing overhead costs allocated to Job 494.

3. At the end of 2011, the actual manufacturing overhead costs were $2,100,000 in machining and $3,700,000 in assembly. Assume that 55,000 actual machine-hours were used in machining and that actual direct manufacturing labor costs in assembly were $2,200,000. Compute the over- or under allocated manufacturing overhead for each department.