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Assume a company started and completed numerous jobs during July-two of which were Job Y and Job Z. The company uses two departmental predetermined
Assume a company started and completed numerous jobs during July-two of which were Job Y and Job Z. The company uses two departmental predetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Department is based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Y and Z Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Estimated variable manufacturing overhead per direct labor-hour Estimated total machine-hours to be used Estimated total direct labor hours to be worked Job V Machine-hours Direct labor-hours Machining Assembly 50 30 Job Z Machine-hours Direct labor-hours 40 60 How much total manufacturing overhead is applied to Job Z from both departments? Machining $ 48,000 $ 1.50 Assembly $ 30,000 $ 2.00 12,000 10,000
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