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 Fabrication Total Assembly $ 960,000 $ 1,200,000 $ 2,160,000 Manufacturing overhead costs Direct labor-hours Machine-hours 36,000 96,000 60,000 24,000 120,000 144,000 Job Bravo Total Direct labor-hours Assembly 13 5 Fabrication 5 8 18 Machine-hours 13 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.) S 208 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 $ 80 $ 288
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 Fabrication Total Assembly $ 960,000 $ 1,200,000 $ 2,160,000 Manufacturing overhead costs Direct labor-hours Machine-hours 36,000 96,000 60,000 24,000 120,000 144,000 Job Bravo Total Direct labor-hours Assembly 13 5 Fabrication 5 8 18 Machine-hours 13 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.) S 208 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 $ 80 $ 288
Chapter1: Financial Statements And Business Decisions
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![### Wilmington Company Overhead Allocation Analysis
Wilmington Company has two manufacturing departments—Assembly and Fabrication. It accounts for all its manufacturing overhead costs as fixed costs. The two sets of data provided give insight into these fixed costs. The first set of data provides estimates from the beginning of the year, and the second set relates to a specific job completed during the year—Job Bravo.
#### Estimated Data:
- **Manufacturing Overhead Costs:**
- Assembly: $960,000
- Fabrication: $1,200,000
- Total: $2,160,000
- **Direct Labor-Hours:**
- Assembly: 60,000 hours
- Fabrication: 36,000 hours
- Total: 96,000 hours
- **Machine-Hours:**
- Assembly: 24,000 hours
- Fabrication: 120,000 hours
- Total: 144,000 hours
#### Job Bravo Data:
- **Direct Labor-Hours:**
- Assembly: 13 hours
- Fabrication: 5 hours
- Total: 18 hours
- **Machine-Hours:**
- Assembly: 5 hours
- Fabrication: 8 hours
- Total: 13 hours
### Required Calculations:
1. **Plantwide Predetermined Overhead Rate Based on Direct Labor-Hours:**
Determine how much manufacturing overhead would be applied to Job Bravo.
2. **Departmental Predetermined Overhead Rates:**
a. Use direct labor-hours as the allocation base for Assembly.
b. Use machine-hours as the allocation base for Fabrication.
Calculate how much manufacturing overhead would be applied to Job Bravo.
### Calculations:
1. **Plantwide Manufacturing Overhead Applied to Job Bravo:**
- **Total Estimated Manufacturing Overhead Costs:** $2,160,000
- **Total Estimated Direct Labor-Hours:** 96,000 hours
- **Predetermined Overhead Rate (Plantwide):**
\[\text{Rate} = \frac{\text{Total Estimated Overhead Costs}}{\text{Total Estimated Direct Labor-Hours}} = \frac{2,160,000}{96,000} = \$22.50 \text{ per direct labor-hour}\]
- **Total Direct Labor-Hours for Job Bravo:** 18 hours
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Transcribed Image Text:### Wilmington Company Overhead Allocation Analysis
Wilmington Company has two manufacturing departments—Assembly and Fabrication. It accounts for all its manufacturing overhead costs as fixed costs. The two sets of data provided give insight into these fixed costs. The first set of data provides estimates from the beginning of the year, and the second set relates to a specific job completed during the year—Job Bravo.
#### Estimated Data:
- **Manufacturing Overhead Costs:**
- Assembly: $960,000
- Fabrication: $1,200,000
- Total: $2,160,000
- **Direct Labor-Hours:**
- Assembly: 60,000 hours
- Fabrication: 36,000 hours
- Total: 96,000 hours
- **Machine-Hours:**
- Assembly: 24,000 hours
- Fabrication: 120,000 hours
- Total: 144,000 hours
#### Job Bravo Data:
- **Direct Labor-Hours:**
- Assembly: 13 hours
- Fabrication: 5 hours
- Total: 18 hours
- **Machine-Hours:**
- Assembly: 5 hours
- Fabrication: 8 hours
- Total: 13 hours
### Required Calculations:
1. **Plantwide Predetermined Overhead Rate Based on Direct Labor-Hours:**
Determine how much manufacturing overhead would be applied to Job Bravo.
2. **Departmental Predetermined Overhead Rates:**
a. Use direct labor-hours as the allocation base for Assembly.
b. Use machine-hours as the allocation base for Fabrication.
Calculate how much manufacturing overhead would be applied to Job Bravo.
### Calculations:
1. **Plantwide Manufacturing Overhead Applied to Job Bravo:**
- **Total Estimated Manufacturing Overhead Costs:** $2,160,000
- **Total Estimated Direct Labor-Hours:** 96,000 hours
- **Predetermined Overhead Rate (Plantwide):**
\[\text{Rate} = \frac{\text{Total Estimated Overhead Costs}}{\text{Total Estimated Direct Labor-Hours}} = \frac{2,160,000}{96,000} = \$22.50 \text{ per direct labor-hour}\]
- **Total Direct Labor-Hours for Job Bravo:** 18 hours
-
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