Question
Wilmington Company has two manufacturing departmentsAssembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data
Wilmington Company has two manufacturing departmentsAssembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the yearJob Bravo.
Estimated Data | Assembly | Fabrication | Total | |||
Manufacturing overhead costs | $ | 3,960,000 | $ | 4,400,000 | $ | 8,360,000 |
Direct labor-hours | 110,000 | 66,000 | 176,000 | |||
Machine-hours | 44,000 | 220,000 | 264,000 | |||
Job Bravo | Assembly | Fabrication | Total |
Direct labor-hours | 23 | 15 | 38 |
Machine-hours | 15 | 18 | 33 |
Required:
1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo?
2. If Wilmington uses departmental predetermined overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much manufacturing overhead would be applied to Job Bravo?
(Round your intermediate calculations to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started