Problem 2-21 (Algo) Plantwide Versus Multiple Predetermined Overhead Rates [LO2-1, LO2-2] Mason Company has two manufacturing departments-Machining 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 Job A Direct labor-hours 5 Machine-hours Job B Direct labor-hours Machine-hours 11 Machining Assembly $20,184,000 4 29,000 12 696,000 Machining Assembly Total 10 15 Total $ 841,000 $ 21,025,000 2 696,000 3 24,000 Machining Assembly Total 5 9 13 15 725,000 720,000 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? 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? (For Requirement 2, round your intermediate calculations and final answers to 2 decimal places.)
Problem 2-21 (Algo) Plantwide Versus Multiple Predetermined Overhead Rates [LO2-1, LO2-2] Mason Company has two manufacturing departments-Machining 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 Job A Direct labor-hours 5 Machine-hours Job B Direct labor-hours Machine-hours 11 Machining Assembly $20,184,000 4 29,000 12 696,000 Machining Assembly Total 10 15 Total $ 841,000 $ 21,025,000 2 696,000 3 24,000 Machining Assembly Total 5 9 13 15 725,000 720,000 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? 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? (For Requirement 2, round your intermediate calculations and final answers to 2 decimal places.)
Chapter1: Financial Statements And Business Decisions
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![Problem 2-21 (Algo) Plantwide Versus Multiple Predetermined Overhead Rates [LO2-1,
LO2-2]
Mason Company has two manufacturing departments-Machining 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 $20,184,000
Direct labor-hours
Machine-hours
Job A
Direct labor-hours
Machine-hours
Job B
Direct labor-hours
Machine-hours
11
Machining Assembly
4
29,000
12
696,000
Machining Assembly Total
5
10
15
Total
$ 841,000 $ 21,025,000
2
696,000
3
24,000
Machining Assembly Total
5
9
13
15
725,000
720,000
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?
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? (For Requirement 2, round your intermediate calculations and final answers to 2 decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F297a232d-84b0-4afc-be8b-dc49e64475d0%2Fc91719e4-b2cd-42f4-82ba-a24cdad1febd%2Fgrwy8fb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 2-21 (Algo) Plantwide Versus Multiple Predetermined Overhead Rates [LO2-1,
LO2-2]
Mason Company has two manufacturing departments-Machining 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 $20,184,000
Direct labor-hours
Machine-hours
Job A
Direct labor-hours
Machine-hours
Job B
Direct labor-hours
Machine-hours
11
Machining Assembly
4
29,000
12
696,000
Machining Assembly Total
5
10
15
Total
$ 841,000 $ 21,025,000
2
696,000
3
24,000
Machining Assembly Total
5
9
13
15
725,000
720,000
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?
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? (For Requirement 2, round your intermediate calculations and final answers to 2 decimal places.)
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