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-hours Job Bravo Direct labor-hours Machine-hours Required: Assembly $ 1,400,000 70,000 28,000 Fabrication $ 1,680,000 42,000 140,000 Total $ 3,080,000 112,000 168,000 Assembly Fabrication 15 7 Total 7 22 10 17 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.)
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-hours Job Bravo Direct labor-hours Machine-hours Required: Assembly $ 1,400,000 70,000 28,000 Fabrication $ 1,680,000 42,000 140,000 Total $ 3,080,000 112,000 168,000 Assembly Fabrication 15 7 Total 7 22 10 17 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.)
Chapter1: Financial Statements And Business Decisions
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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-hours
Job Bravo
Direct labor-hours
Machine-hours
Assembly
$ 1,400,000
70,000
28,000
Fabrication
$ 1,680,000
42,000
140,000
Total
$ 3,080,000
112,000
168,000
Assembly Fabrication
Total
15
7
7
22
10
17
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.)
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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