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COTB MC Qu. 2-78 (Algo) Assume a company has two manufacturing... Assume a company has two manufacturing departments - Assembly and Fabrication. The company
COTB MC Qu. 2-78 (Algo) Assume a company has two manufacturing... 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 Manufacturing overhead costs Direct labor hours Machine hours Actual Data Manufacturing overhead costs Direct labor hours Machine hours Job Z Direct labor hours Machine hours Assembly $ 300,000 25,000 10,000 Assembly $ 330,000 27,000 10,500 Assembly 13.00 hours Fabrication $ 400,000 15,000 50,000 Fabrication $ 380,000 16,000 48,000 Fabrication 2 hours 1 hour 10.00 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?
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