Question
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 25,000 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? Multiple Choice $328.13 $227.57 $251.63 $269.76
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