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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 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 Estimated Data Manufacturing overhead Direct labor-hours Machine-hours Job A Machining $ 4,212,000 18,000 234,000 Assembly $ 324,000 234,000 13,000 Total $ 4,536,000 252,000 247,000 Machining Assembly Total Direct labor-hours 5 10 15 Machine-hours 11 2 13 Job B Machining Assembly Direct labor-hours Total 9 Machine-hours 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.) 1. Manufacturing overhead applied Job A 1. Manufacturing overhead applied Job B 2. Manufacturing overhead applied Job A 2. Manufacturing overhead applied Job B
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