Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 25,00015,000
Machine hours 10,00050,000
Actual Data Assembly Fabrication
Manufacturing overhead costs $ 330,000 $ 380,000
Direct labor hours 27,00016,000
Machine hours 10,50048,000
Job Z Assembly Fabrication
Direct labor hours 8.50 hours 2 hours
Machine hours 1 hour 5.50 hours
Assume the company uses departmental predetermined overhead rates. It uses 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 from both departments to Job Z?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Routledge Companion To Fair Value In Accounting

Authors: Gilad Livne

1st Edition

0367656132, 9780367656133

More Books

Students also viewed these Accounting questions

Question

What role does communication play in developing personal identity?

Answered: 1 week ago