Question
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
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 yer as well as the information for Job A and Job B
Estimated Data Machining Assembly Total
Manufacturing overhead 1,764,000 196,000 1,960,000
Direct Labor Hours 14,000 126,000 140,000
Machine Hours 126,000 9,000 135,000
Job A
Direct labor 5 10 15
Machine Hours 11 2 13
Job B
Direct Labor 4 5 9
Machine Hours 12 3 15
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? and Job B?
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