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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 DataAssembly Manufacturing overhead costs Direct labor-hours Total $7,800,000 $8,400,000 16,200,000 240,000 360,000 Fabrication 150,000 60,000 90,000 300,000 Machine-hours Assembly Fabrication Total 31 Job Bravo 23 Direct labor-hours 54 49 Machine-hours 23 26 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.) 1. Plantwide manufacturing overhead applied to Job Bravo $ 68 $3,645 2. Manufacturing overhead applied from Assembly to Job Bravo Manufacturing overhead applied from Fabrication to Job Bravo $ 52 Total departmental manufacturing overhead applied to Job Bravo3,697
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