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5 Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the
5 Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B Manufacturing overhead Direct labor-bours Machine-hours Job A +ock Direct labor-hours Machine-hours P Job Direct labor-hours Machining $2,350,000 15,000 150,000 Assembly $225,000 150,000 10,000 Machining Assembly Total 5 31 16 15 2 13 Machining Assembly Total Total 3,475,000 165,000 160,000 13 poin Machine-hours Required: 1. If Mason Company uses a plantwide predetermined overhead rate with direct labor-hours as the allocation base, how much manufacturing overhead cost would be applied to Job A2 Job 8? 2. Assume that Mason Company uses departmental predetermined overhead rates. The Machining Department is allocated based on machine-hours and the Assembly Department is allocated based on direct labor hours. How much manufacturing overhead cost would be applied to Job A? Job B? (For Requirement 2, round your intermediate calculations and final answers to 2 decimal places.) 1. Manufacturing overhead applied Job A 225 1. Manufacturing overhead applied Job B 2. Manufacturing overhead applied Job A 2. Manufacturing overhead applied Job B 135 Check my work
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