Lynn Company uses a job-costing system at its Mississauga plant. The plant has a Machining…

Lynn Company uses a job-costing system at its Mississauga 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 labour) and two manufacturing overhead cost pools (the Machining Department, allocated using actual machine-hours (MH), and the Assembly Department, allocated using actual direct manufacturing labour cost). The 2016 budget for the plant is as follows: Machining Department Assembly Department Manufacturing overhead (MOH)…………$1,800,000…………………$3,600,000 Direct manufacturing labour cost…………$1,400,000…………………$2,000,000 Direct manufacturing labour-hours (DMLH)…100,000…………………….200,000 Machine-hours (MH)…………………………..50,000…………………….200,000 The company uses a budgeted overhead rate for allocating overhead to production orders on a machine-hour basis in Machining and on a direct-manufacturing-labour-cost basis in Assembly. Required 1. During February, the cost record for Job 494 contained the following: Machining Department Assembly Department Direct materials used………………………$45,000………………………$70,000 Direct manufacturing labour cost………….$14,000………………………$15,000 Direct manufacturing labour-hours……………1,000…………………………1,500 Machine-hours (MH)…………………

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