Chapter 2, Problem 17P

Plantwide and Departmental Predetermined Overhead Rates; Overhead Application
Wilmington Company has two manufacturing departments—Assembly and Fabrication. It considers all of its manufacturing overhead costs tobe 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 toone particular job completed during the year—Job Bravo.

Required:

1. If Wilmington used a planwtide 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 al1ocaon base in Fabrication, how much manufacturingoverhead would he applied to Job Bravo?