Question
Wilmington Company has two manufacturing departments- Assembly and Fabrication, It considers all of its manufacturing overhead costs to be fixed costs. The first set of
Wilmington Company has two manufacturing departments- Assembly and Fabrication, It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year-Job Bravo.
Estimated Data Assembly Fabrication Total
Manufacturing overhead costs $600,000 $800,000 $1,400,000
Direct labor-hours 50,000 30,000 80,000
Machine-hours 20,000 100,000 120,000
Job Bravo Assembly Fabrication Total
Direct labor-hours 11 3 14
Machine-hours 3 6 9
Required:
1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo?
2. If Wilmington uses departmental predetermine overhead rates with direct labor-hours as the allocation base in Assembly and Machine-hours as the allocation base in Fabrication, how much manufacturing overhead would be applied to Job Bravo?
(Round your intermediate calculations to 2decimal places.)
1. Plantwide manufacturing overhead applied to Job Bravo _________
2. Manufacturing overhead applied from Assembly to Job Bravo _________
2. Manufacturing overhead applied from Fabrication to Job Bravo __________
2. Total departmental manufacturing overhead applied to Job Bravo __________
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