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Problem 2-21 Plantwide Versus Multiple Predetermined Overhead Rates [LO2-1, LO2-2] Mason Company has two manufacturing departments-Machiing and Assembly. The company considers all of its manufacturing
Problem 2-21 Plantwide Versus Multiple Predetermined Overhead Rates [LO2-1, LO2-2] Mason Company has two manufacturing departments-Machiing 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 Machining Assembly $10,944,000 576,000 11,520,000 Total 24,000 456,000 456,000 19,000 480,000 475,000 Job A Direct labor hours Machine hours Machining Assembly Total 10 15 13 Job B Direct labor hours Machine hours Machining Assembly Total 12 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? (Round your answers to the nearest whole dollar amount.) 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? (Round your intermediate calculations and final answers to 2 decimal places.) 1.Manufacturing overhead applied Job A Manufacturing overhead applied Job B 2. Manufacturing overhead applied Job A Manufacturing overhead applied Job B
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