Question

Problem 2-17 Plantwide and Departmental Predetermined Overhead Rates; Overhead Application (LO2- 1, LO2-2) 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 Assembly $ 6,210,000 135,000 54,600 Fabrication $ 6,750,000 81,eee 270,eee Total $12,960,000 216.000 324,000 Total Job Bravo Direct labor-hours Machine-hours Assembly 28 20 Fabrication 29 23 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.) 1. Plantwide manufacturing overhead applied to Job Bravo 2. Manufacturing overhead applied from Assembly to Job Bravo Manufacturing overhead applied from Fabrication to Job Bravo Total departmental manufacturing overhead applied to Job Bravo ກະ ທາງອາວະກາດ 3 -

Answer 1

twimington compony has 1wo manul Requised 2880 Plantwide manuf oH Applied to Job eaavo 1288 manuf OH APplied faom Assembly TO JOb BaaVO manuf oH APpliea from fabication to Job Baavo 2. S75 TOT0 Depaatmenta manufOH appled 10.106 Bacvo B1863 EXPlanation (1) plantwide oveshead Rate: Estimated manuf orH ESHmated Disect labor HOUS 12,9 60 000 216,000 $ 60 Pes Dizect lab0Y HOUY lplantwide manuf oH Applied to Job BaNO DL Rate Pes HOU X DLHOU Woaked on Bavo $ 60 X 48 $42880 (2) Predetemined oveahead Rate in Assembly: -Estimoted manuf OH + estimaled 10tal DLH $6,210,000 13S000 S46 Pes DLHOUY

Predeteimined overhead Rate in fabaication manuf. OH =EStimated ESHmated machine HOUS $ 6, 750,00 $ 25 Pes machine HOUS 2 70, 000 : oveshecad APplied. Fabaication TOTOH ASsembly oyantity oF Allocation Baseused (a) 28 DLH 23 MHH Predetermirned overhead Rate $ 46 (6) F25 overhead APPlied to Boavo (axb) F 1288 s1863