Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Assembly Fabrication Total
Manufacturing overhead costs $ 600,000 $ 800,000 $ 1,400,000
Direct labour-hours 50,000 30,000 80,000
Machine-hours 20,000 100,000 120,000

Job Bravo Assembly Fabrication Total
Direct labour-hours 11 3 14
Machine-hours 3 6 9

Required:

1. If Wilmington used a plantwide predetermined overhead rate based on direct labour-hours, how much manufacturing overhead would be applied to Job Bravo?

2. If Wilmington uses departmental predetermined overhead rates with direct labour-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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Management Accounting

Authors: Maurice L. Hirsch Jnr.

2nd Edition

1861526768, 978-1861526762

More Books

Students also viewed these Accounting questions