Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help Save & Exit Submit A company has two manufacturing departments-Machinery and Assembly. The company considers all of its manufacturing overhead costs to be fixed

image text in transcribed
image text in transcribed
Help Save & Exit Submit A company has two manufacturing departments-Machinery 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 Information with respect to Jobs A and B. Estimated Data Manufacturing overhead Direct labor-hours Machine-hours Machining $ 22,500,000 30,000 750,000 Msembly Total $ 900,000 $23,400,000 750,000 780,000 25,000 775,000 Job Direct labor-hours Machine-hours Machining Assembly Total 5 10 15 11 2 13 Job D Direct labor-hours Machine-hours Machining Assembly Total 15 1. If the 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 A? Job B? 2. Assume that the 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 B7 (Round your intermediate calculations and final answers to 2 decimal places.) 1. Manufacturing overhead applied Job A VVV 775,000 Job Direct labor-hours Machine-hour Machining Membly Total 5 10 15 11 2 13 Job Direct labor-hours Machine-hours Total Machining Assembly 5 12 15 1. If the 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 A? Job B? 2. Assume that the 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? (Round your Intermediate calculations and final answers to 2 decimal places.) 1. Manufacturing overhead applied JobA Manufacturing overhead applied Job B 2. Manufacturing overhead applied JobA Manufacturing overhead applied Job B

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

Students also viewed these Accounting questions