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 Assembly Fabrication Total Manufacturing overhead costs $ 3,570,000 $ 3,990,000 $ 7,560,000 Direct labor-hours 105,000 63,000 168,000 Machine-hours 42,000 210,000 252,000 Job Bravo Assembly Fabrication Total Direct labor-hours 22 14 36 Machine-hours 14 17 31 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.)
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 Assembly Fabrication Total Manufacturing overhead costs $ 3,570,000 $ 3,990,000 $ 7,560,000 Direct labor-hours 105,000 63,000 168,000 Machine-hours 42,000 210,000 252,000 Job Bravo Assembly Fabrication Total Direct labor-hours 22 14 36 Machine-hours 14 17 31 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Wilmington Company has two manufacturing departments—Assembly and Fabrication. It considers all of its
| Estimated Data | Assembly | Fabrication | Total |
|---|---|---|---|
| Manufacturing overhead costs | $ 3,570,000 | $ 3,990,000 | $ 7,560,000 |
| Direct labor-hours | 105,000 | 63,000 | 168,000 |
| Machine-hours | 42,000 | 210,000 | 252,000 |
| Job Bravo | Assembly | Fabrication | Total |
|---|---|---|---|
| Direct labor-hours | 22 | 14 | 36 |
| Machine-hours | 14 | 17 | 31 |
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.)
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