Question
Wilmington Company has two manufacturing departments--Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data
Wilmington Company has two manufacturing departments--Assembly 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 year--Job Bravo.
Estimated DataAssemblyFabricationTotalManufacturing overhead costs$5,720,000$6,240,000$11,960,000Direct labor-hours130,00078,000208,000Machine-hours52,000260,000312,000
Job BravoAssemblyFabricationTotalDirect labor-hours271946Machine-hours192241
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 calculation to 2 decimal places.)
This is what I got:
1.Plantwide manufacturing overhead applied to Job Bravo$943
2.Manufacturing overhead applied from Assembly to Job Bravo $849
Manufacturing overhead applied from Fabrication to Job Bravo $1,255
Total departmental manufacturing overhead applied to Job Bravo $2,104
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