PROBLEM 2-17 Plantwide and Departmental Predetermined Overhead Rates; Overhead Application LO2-1, LO2–2 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 page 93 during the year–Job Bravo. Assembly Fabrication $600,000 $800,000 $1,400,000 Estimated Data Total Manufacturing overhead costs.. Direct labor-hours. 50,000 30,000 80,000 Machine-hours. 20,000 100,000 120,000 Job Bravo Assembly Fabrication Total Direct labor-hours. 11 3 14 Machine-hours. 3 6 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 hase in Assambly andmachine hours as the allocation base in Fabrication, how much manufacturing overhead would be applied to Job B We've updated our read aloud featurel
PROBLEM 2-17 Plantwide and Departmental Predetermined Overhead Rates; Overhead Application LO2-1, LO2–2 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 page 93 during the year–Job Bravo. Assembly Fabrication $600,000 $800,000 $1,400,000 Estimated Data Total Manufacturing overhead costs.. Direct labor-hours. 50,000 30,000 80,000 Machine-hours. 20,000 100,000 120,000 Job Bravo Assembly Fabrication Total Direct labor-hours. 11 3 14 Machine-hours. 3 6 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 hase in Assambly andmachine hours as the allocation base in Fabrication, how much manufacturing overhead would be applied to Job B We've updated our read aloud featurel
Chapter1: Financial Statements And Business Decisions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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2. If Wilmington uses departmental predetermined
Transcribed Image Text:b Answered: he ABC Company is x
A. Quiz: Test 1: Chapters 1 & 2
A Week 2 Assignment
Bookshelf - Managerial Accour X
1 VitalSource Bookshelf: Manage X
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A online.vitalsource.com/#/books/9781259995484/cfi/6/24!/4/2/60/2/22/2/2/2@0:0
2. Assume that Landen's controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:
a. Compute the plantwide predetermined overhead rate.
b. Compute the total manufacturing cost of Job 550.
c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?
3. Assume that Landen's controller is right about machine-hours being
the company continues to use direct labor-hours as its only overhead cost allocation base what implications does this have for pricing jobs
such as Job 550?
A < Chapter 2 Job-Order ...
Go to Chapter 2 Job-Order
Costing: Calculating Unit Pro.
more accurate overhead cost allocation base than direct labor-hours. If
87
Exercises
PROBLEM 2-17 Plantwide and Departmental Predetermined Overhead Rates; Overhead Application LO2-1, LO2-2
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 page 93
during the year-Job Bravo.
92
Problems
95
Case
Estimated Data
Assembly
Fabrication
Total
Manufacturing overhead costs
$600,000
$800,000
$1,400,000
Appendix 2A: Activity-Based
Absorption Costing
96
Direct labor-hours
50,000
30,000
80,000
Machine-hours
20,000
100,000
120,000
Glossary (Appendix 2A)
Job Bravo
Assembly
Fabrication
Total
Direct labor-hours
11
3
14
Appendix 2A: Exercises,
Problems, and Case
Machine-hours
3
6.
9
Required:
Appendix 2B: The
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 hase in Assembly and machine hours
as the allocation base in Fabrication, how much manufacturing overhead would be applied to Job Br
103
Predetermined Overhead...
Appendix 2B: Exercises,
Problem, and Case
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PROBLEM 2-18 Job-Order Costing for a Service Company L02-1, LO2-2, L02-3
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