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. Assembly $7,800,000 $8,400,000 150,000 60,000 Estimated Data Fabrication Total Manufacturing overhead costs Direct labor-hours 90,000 зее, еее $16,200,000 240,000 360,000 Machine-hours Job Bravo Assembly Fabrication Total Direct labor-hours 31 23 54 Machine-hours 23 26 49 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.)
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. Assembly $7,800,000 $8,400,000 150,000 60,000 Estimated Data Fabrication Total Manufacturing overhead costs Direct labor-hours 90,000 зее, еее $16,200,000 240,000 360,000 Machine-hours Job Bravo Assembly Fabrication Total Direct labor-hours 31 23 54 Machine-hours 23 26 49 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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