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 Manufacturing overhead costs Direct labor-hours Machine-hour's Job Bravo Direct labor-hours Machine-hours Assembly 31 23 Assembly $ 7,800,000 150,000 60,000 Fabrication 23 26 1. Plantwide manufacturing overhead applied to Job Bravo 2. Manufacturing overhead applied from Assembly to Job Bravo Fabrication Total $8,400,000 $16,200,000 2. Manufacturing overhead applied from Fabrication to Job Bravo 2. Total departmental manufacturing overhead applied to Job Bravo 90,000 300,000 Total 54 49 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 calculations to 2 decimal places.) 240,000 360,000
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 Manufacturing overhead costs Direct labor-hours Machine-hour's Job Bravo Direct labor-hours Machine-hours Assembly 31 23 Assembly $ 7,800,000 150,000 60,000 Fabrication 23 26 1. Plantwide manufacturing overhead applied to Job Bravo 2. Manufacturing overhead applied from Assembly to Job Bravo Fabrication Total $8,400,000 $16,200,000 2. Manufacturing overhead applied from Fabrication to Job Bravo 2. Total departmental manufacturing overhead applied to Job Bravo 90,000 300,000 Total 54 49 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 calculations to 2 decimal places.) 240,000 360,000
Chapter1: Financial Statements And Business Decisions
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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.
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Transcribed Image Text: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
Manufacturing overhead costs
Direct labor-hours
Machine-hour's
Job Bravo
Direct labor-hours
Machine-hours
Assembly
31
23
Assembly
$ 7,800,000
150,000
60,000
Fabrication
23
26
1. Plantwide manufacturing overhead applied to Job Bravo
2. Manufacturing overhead applied from Assembly to Job Bravo
Fabrication
Total
$8,400,000 $16,200,000
90,000
240,000
300,000
360,000
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 calculations to 2 decimal places.)
2. Manufacturing overhead applied from Fabrication to Job Bravo
2. Total departmental manufacturing overhead applied to Job Bravo
Total
54
49
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