Question

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 $ 600,000 50,000 20.000 Fabrication $ 800,000 30,000 100.000 Total 1,400,000 80,000 120.000 Assembly Fabrication Total Job Bravo Direct labor-hours Machine-hours Required: 1. 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

Answer 1

Anscoey o calculation of plantwide Manufacturing overhead applied | to Job Bravo. Over head applied to Job Bravo = Total direct labor hours spend on Job Bravo x pre determined over head val Dee-Determined overhead role = Total estimated Manufacture Overhead costs! Estimated Direct labor hours = $1,400,000/ 80.000 ::pre-Determined overhead tate = $17.5 per disect lan Overhead applied to Job Bravo = 14 hours x $17.5 per direct L Labor how (2) Calculation of pre determined overhead sate for assembly department to pre determined overhead sale - Total overhead Manufacturing Overhead casts for asembly Estimated direct labor hours for assembly. - $600.000/ 50,000: $ 12 perdere pre determined overhead rate for assembly department | is $ 12 per direct labor hours. > calculation of pre-delermined overhead tale for fabrication department. pre-Determined overhead sate = Total estimated manufacturing Overhead costs for frabrication estruated marking hour for Rooood, fabrication = $8 per machine hour 091099.ogo. ::pose-Determined overhead sate for fabrication is $8 per machine hour. » calculation of manufacturing everhead to be applied to 30b Bravo Overhead applied to Job Brave Divech Lobor Lions to rate for assembly, department Litermined awrluad rate Sro-determined overhead assembly department) + (predetermined oorleadrate for fabrication department & Machine hours for fabrication departement) *12*11)+48x6) $132 + $48 = $180 - Mavu faclaring overhead to be applied to Job Byavo is $180,