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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

Mason Company has two manufacturing departmentsMachining 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:
Estimated Data Machining Assembly Total
Manufacturing overhead $ 6,000,000 $ 400,000 $ 6,400,000
Direct labor-hours 20,000300,000320,000
Machine-hours 300,00015,000315,000
Job A Machining Assembly Total
Direct labor-hours 51015
Machine-hours 11213
Job B Machining Assembly Total
Direct labor-hours 459
Machine-hours 12315
Required:
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?
Assume that Mason 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?

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