Home Tools Managerial-Accou... * Sign In 2Share A 603 60 Q 05 (128 of 817 Am o 26.2% E B dent At least one signature is invalid. Signature Panel Search "Header - Export PDF Job-Order Costing: Calculating Unit Product Costs Pe Create PDF Edit PDF PROBLEM 2-21 Plantwide Versus Multiple Predetermined Overhead Rates LO 2-1, LO2-2 Mason Company has two manufacturing departments Machining 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 following information with respect to Jobs A and B: 5 Comment Combine Files Estimated Data Manufacturing overhead ..... Direct labor-hours ........... Machine-hours ......... .. Machining $500,000 10.000 50,000 Assembly $100,000 50.000 5.000 Total $600,000 60.000 55,000 Organize Pages Redact Job A Direct labor-hours .......................... Machine-hours ! ! Machining Assembly Total 5 1 0 15 11213 0 Protect Machining Optimize PDF Jab B Direct labor-hours ......... Machine-hours ...... Assembly Total 59 12 15 Le Fill & Sign L. Send for Review Required: 1. If Mason 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 Mason Company uses departmental predetermined overhead rates. The Machin- ing Department is allocated based on machinc-hours and the Assembly Department is allo cated based on direct labor-hours. How much manufacturing overhead cost would be applied to Job A?Job B? 3. If Mason multiplies its job onts by a markup percentage to establish selling prices, how might plantwide overhead allocation adversely affect the company's pricing decisions? Convert and edit PDFs with Acrobat Pro DC Start Free Trial