Question

1 points 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 $ 960,000 $1,200,000 $2,160,000 Direct labor-hours 60,000 36,000 96,000 Machine-hours 24,000 120,000 144,000 eBook Job Bravo Direct labor. hours Machine-hours Assembly Fabrication 13 5 5 . Total 13 Print 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.) Deferences 1. Plantwide manydacturing 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

Answer:

1	Plantwide manufacturing overhead applied to Job Bravo	$405.
2	Manufacturing overhead applied from Assembly to Job Bravo	$208
	Manufacturing overhead applied from Fabrication to Job Bravo	$80
	Total departmental manufacturing overhead applied to Job Bravo	$288

Explanation:

1. Plantwide manufacturing overhead rate = Estimated manufacturing overhead / Estimated total direct labor-hours

= $2,160,000 / 96,000 DHLs

= $22.50 per DHL

Plantwide manufacturing overhead applied to Job Bravo = Actual total direct labor-hours * Plantwide manufacturing overhead rate

= 18 DHLs * $22.50 = $405.

2.Predetermined overhead rate in Assembly department =  Estimated manufacturing overhead / Estimated direct labor-hours

= $960,000 / 60,000 DHLs

= $16.00 per DHL

Manufacturing overhead applied from Assembly to Job Bravo = Actual direct labor-hours in Assembly * Predetermined overhead rate in Assembly department

= 13 DHLs * $16 = $208.

Predetermined overhead rate in the Fabrication department =  Estimated manufacturing overhead / Estimated machine labor-hours

= $1,200,000 / 120,000 MHLs

= $10 per MHLs

Manufacturing overhead applied from Fabrication to Job Bravo = Actual machine labor-hours in Fabrication * Predetermined overhead rate in Fabrication department

= 8 MHLs * $10 = $80

Total departmental manufacturing overhead applied to Job Bravo =

Manufacturing overhead applied from Assembly to Job Bravo + Manufacturing overhead applied from Fabrication to Job Bravo

= $208 + $80 = $288