Question
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
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 $ 16,038,000 $ 729,000 $ 16,767,000 Direct labor-hours 27,000 594,000 621,000 Machine-hours 594,000 22,000 616,000 Job A Machining Assembly Total Direct labor-hours 5 10 15 Machine-hours 11 2 13 Job B Machining Assembly Total Direct labor-hours 4 5 9 Machine-hours 12 3 15 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 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? (For Requirement 2, round your intermediate calculations and final answers to 2 decimal places.) Prev Question 4 of 5 Total 4 of 5 Visit question mapNext
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