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 15 Assembly $1,400,000 70,000 25,000 Fabrication 10 Fabrication $ 1,680,000 42,000 140,000 Total 22 17 Total $ 3,000,000 112,000 168,000 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
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 15 Assembly $1,400,000 70,000 25,000 Fabrication 10 Fabrication $ 1,680,000 42,000 140,000 Total 22 17 Total $ 3,000,000 112,000 168,000 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Please do not give solution in image format thanku
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
Job Bravo
Direct labor-hours
Machine-hours
Assembly
15
7
Assembly
$ 1,400,000
70,000
28,000
Fabrication
7
10
Fabrication
$ 1,680,000
42,000
140,000
Total
22
17
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
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?
Total
$ 3,080,000
112,000
168,000
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.
$
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education