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 Job Bravo Direct labor-hours Machine-hours Assembly 29 21 Assembly $ 6,720,000 140,000 56,000 Fabrication 21 24 Fabrication Total $ 7,280,000 $ 14,000,000 84,000 280,000 Total 50 45 224,000 336,000 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?

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 Job Bravo Direct labor-hours Machine-hours Assembly 29 21 Assembly $ 6,720,000 140,000 56,000 Fabrication 21 24 Fabrication Total $ 7,280,000 $ 14,000,000 84,000 280,000 Total 50 45 224,000 336,000 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?

Name: Wilmington Company has two manufacturing departments-Assembly and Fab
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Description: Wilmington Company has two manufacturing departments-Assembly and Fabrication. All of its manufacturing overhead costs arefixed costs. The first set of data shown below is based on estimates from the beginning of the year. The second set of data rel

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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