49)

Assume a company has two manufacturing departments Assembly and Fabrication. The company considers all of its manufacturing overhead costs to be fixed costs. The first set of data below is budgeted data for the company as a whole that was estimated at the beginning of the year. The second set of data below is actual data for the company as a whole that was derived at the end of the year. The third set of data relates to one particular job completed during the year Job Z.

Budgeted Data	Assembly			Fabrication
Manufacturing overhead costs	$	300,000		$	400,000
Direct labor hours		25,000			15,000
Machine hours		10,000			50,000

Actual Data	Assembly			Fabrication
Manufacturing overhead costs	$	330,000		$	380,000
Direct labor hours		27,000			16,000
Machine hours		10,500			48,000

Job Z	Assembly			Fabrication
Direct labor hours	12.75	hours		6	hours
Machine hours	1	hour		7	hours

If the company uses a plantwide approach for applying overhead to production with direct labor-hours as the allocation base, how much manufacturing overhead would be applied to Job Z?

rev: 04_27_2020_QC_CS-208650, 06_15_2020_QC_CS-208650

Multiple Choice

• $328.13

• $227.57

• $251.63

• $269.76