PROBLEM 4-20_______________________________________________________________ The Lynn Company uses a 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 using actual machine hours, and the Assembly Department overhead, allocated using actual direct manufacturing labor cost). The 2004 budget for the plant is: Machining Department Manufacturing overhead Direct manufacturing labor cost Direct manufacturing labor-hours Machine-hours Required: 1. Present an overview diagram of Lynn=s job-costing system. manufacturing overhead rate for each department. Compute the budgeted $1,800,000 1,400,000 100,000 50,000 Assembly Department $3,600,000 2,000,000 200,000 200,000

2. During February, the job cost record for Job 494 contained the following: Machining Department Direct materials used Direct manufacturing labor cost Direct manufacturing labor-hours Machine-hours $45,000 $14,000 1,000 2,000 Assembly Department $70,000 $15,000 1,500 1,000

Compute the total manufacturing overhead costs of Job 494. 3. At the end of 2004, 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 overallocated or underallocated manufacturing overhead for each department. Instructions: 1. Review the printed template called Problem 4-20 that follows these instructions. In some problems, some of the problem data have been entered for you in the data input section of the spreadsheet. PROBLEM 4-20 Continued

2. There are 9 FORMULAS in the template that you need to provide to complete your analysis. Using the spaces provided below, write the formulas where requested in the template. FORMULA 1 _________________ FORMULA 2 _________________ FORMULA 3 _________________ FORMULA 4 _________________ FORMULA 5 _________________ 3. Click the Excel icon from the program manager screen to start the spreadsheet program. Click on the Open File SmartIcon/Button to retrieve the template for the problem. Then enter the 9 FORMULAS where indicated on the template. 4. Click the Save File SmartIcon/Button to save your work. 5. Click the Print Button to print your work. FORMULA 6 _________________ FORMULA 7 _________________ FORMULA 8 _________________ FORMULA 9 _________________