Question

Help Save & Exit Submit A company has two manufacturing departments-Machinery and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the Information with respect to Jobs A and B. Estimated Data Manufacturing overhead Direct labor-hours Machine-hours Machining $ 22,500,000 30,000 750,000 Msembly Total $ 900,000 $23,400,000 750,000 780,000 25,000 775,000 Job Direct labor-hours Machine-hours Machining Assembly Total 5 10 15 11 2 13 Job D Direct labor-hours Machine-hours Machining Assembly Total 15 1. If the company uses a plantwide predetermined overhead rate with direct labor-hours as the allocation base, how much manufacturing overhead cost would be applied to Job A? Job B? 2. Assume that the company uses departmental predetermined overhead rates. The Machining Department is allocated based on machine-hours and the Assembly Department is allocated based on direct labor hours. How much manufacturing overhead cost would be applied to Job A? Job B7 (Round your intermediate calculations and final answers to 2 decimal places.) 1. Manufacturing overhead applied Job A

Answer 1

A B с 1 2 1. Manufacturing overhead applied Job A $ 450 3 Manufacturing overhead applied Job B $ 270 4 2.. Manufacturing overhead applied Job A $ 342.00 5 Manufacturing overhead applied Job B $ 366.00 6 7 1) 8 Manufacturing overhead $ 23,400,000 9 Total direct labor hours 780000 10 Plantwide predetermined overhead rate $ 30 11 12 Job A $ $ 120 Job B 150 $ 300 $ 450 $ 13 Machining 14 Assembly 15 Manufacturing overhead applied 16 150 $ 270 17 2) 18 19 Manufacturing overhead 20 Machine hours 21 Direct labor-hours 22 Predetermined overhead rate 23 Machining Assembly $ 22,500,000 $ 900,000 750000 750000 $ 30.00 $ 1.20 24 25 Machining 26 Assembly 27 Manufacturing overhead applied JobA Job B $ 330.00 $ 360.00 $ 12.00$ 6.00 $ 342.00 $ 366.00

A B с 1 2 1. Manufacturing overhead applied Job A =+B15 3 Manufacturing overhead applied Job B =+C15 4 2.. Manufacturing overhead applied Job A =+B27 5 Manufacturing overhead applied Job B =+C27 6 7 1) 8 Manufacturing overhead 23400000 9 Total direct labor hours 780000 10 Plantwide predetermined overhead rate =+B8/B9 11 12 JobA Job B 13 Machining =+B10*5 =+B10*4 14 Assembly =B10*10 =5*B10 15 Manufacturing overhead applied =+B13+B14 =+C13+C14 16 17 2) 18 Machining Assembly 22500000 900000 750000 750000 =+B19/B20 =+C19/C21 19 Manufacturing overhead 20 Machine hours 21 Direct labor-hours 22 Predetermined overhead rate 23 24 25 Machining 26 Assembly 27 Manufacturing overhead applied JobA Job B =+B22*12 =B22*11 1=C22*10 =+C22*5 =+B25+B26 =+C25+C26