Question

Problem 2-17 (Algo) 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 Fabrication Total $2,520,000 $2,880,000 $5,400,000 90,000 54,000 144,000 36,000 180,000 216,000 Total Job Bravo Direct labor-hours Machine-hours Assembly Fabrication 19 11 11 14 30 25 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 $ 0

1 and 2 please

Answer 1

1
Total estimated Manufacturing overhead	5400000
Divide by Total Direct labor hours	144000
Plantwide predetermined overhead rate	37.50
Total direct labor hours Job Bravo	30
X Plantwide predetermined overhead rate	37.50
Plantwide manufacturing overhead applied to Job Bravo	1125
2
Departmental predetermined overhead rate:
Assembly	28	=2520000/90000
Fabrication	16	=2880000/180000
Manufacturing overhead applied from Assembly to Job Bravo	532	=19*28
Manufacturing overhead applied from Fabrication to Job Bravo	224	=14*16
Total departmental Manufacturing overhead applied to Job Bravo	756