Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manufacturing...
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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 Total Estimated Data Manufacturing overhead Direct labor hours Machine hours Machining $500, 000 10, 000 50, 000 Assembly 100, 000 S 600, 000 60, 000 55, 000 50, 000 , 000 Job A Direct labor hours Machine hours Machining Assembly Total 10 15 13 Machining Assembly Total Job B Direct labor hours Machine hours 12 15 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? 1. Manufacturing overhead applied Job A Manufacturing overhead applied Job E 2. Manufacturing overhead applied Job A Manufacturing overhead applied Job B
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