Wilmington Company has two manufacturing departments-Assembly and Fabrication. All of its manufacturing overhead costs are fixed costs. The first set of data 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 Manufacturing overhead costs Direct labor-hours Machine-hours Assembly $ 770,000 55,000 22,000 Fabrication $ 990,000 33,000 110,000 Total $ 1,760,000 88,000 132,000 Direct labor-hours Assembly 12 4 Fabrication 4 7 Total 16 11 Job Bravo Machine-hours Required: 1. If Wilmington uses 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? Note: Round your intermediate calculations to 2 decimal places. 1. Plantwide manufacturing overhead applied to Job Bravo 2. Manufacturing overhead applied from Assembly to Job Bravo 2. Manufacturing overhead applied from Fabrication to Job Bravo 2. Total departmental manufacturing overhead applied to Job Bravo
Wilmington Company has two manufacturing departments-Assembly and Fabrication. All of its manufacturing overhead costs are fixed costs. The first set of data 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 Manufacturing overhead costs Direct labor-hours Machine-hours Assembly $ 770,000 55,000 22,000 Fabrication $ 990,000 33,000 110,000 Total $ 1,760,000 88,000 132,000 Direct labor-hours Assembly 12 4 Fabrication 4 7 Total 16 11 Job Bravo Machine-hours Required: 1. If Wilmington uses 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? Note: Round your intermediate calculations to 2 decimal places. 1. Plantwide manufacturing overhead applied to Job Bravo 2. Manufacturing overhead applied from Assembly to Job Bravo 2. Manufacturing overhead applied from Fabrication to Job Bravo 2. Total departmental manufacturing overhead applied to Job Bravo
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Wilmington Company has two manufacturing departments-Assembly and Fabrication. All of its manufacturing overhead costs are
fixed costs. The first set of data 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
Manufacturing overhead costs
Direct labor-hours
Machine-hours
Assembly
$ 770,000
55,000
22,000
Fabrication
$ 990,000
33,000
110,000
Total
$ 1,760,000
88,000
132,000
Direct labor-hours
Assembly
12
4
Fabrication
4
7
Total
16
11
Job Bravo
Machine-hours
Required:
1. If Wilmington uses 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?
Note: Round your intermediate calculations to 2 decimal places.
1. Plantwide manufacturing overhead applied to Job Bravo
2. Manufacturing overhead applied from Assembly to Job Bravo
2. Manufacturing overhead applied from Fabrication to Job Bravo
2. Total departmental manufacturing overhead applied to Job Bravo
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