Wilmington Company has two manufacturing departments--Assembly and Fabrication. It considers all of its manufacturing overhead...
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Accounting
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 Data
Assembly
Fabrication
Total
Manufacturing overhead costs
$
7,800,000
$
8,400,000
$
16,200,000
Direct labor-hours
150,000
90,000
240,000
Machine-hours
60,000
300,000
360,000
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.)
1.
Plantwide manufacturing overhead applied to Job Bravo
2.
Manufacturing overhead applied from Assembly to Job Bravo
Manufacturing overhead applied from Fabrication to Job Bravo
Total departmental manufacturing overhead applied to Job Bravo
Answer & Explanation
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