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. Assembly Fabrication Total Estimated Data Manufacturing overhead costs Direct labor-hours Machine-hours $ 7,800,000 150,000 60,000 $ 8,400,000 90,000 300,000 $ 16,200,000 240,000 360,000 Job Bravo Direct labor-hours Machine-hours Assembly Fabrication 31 23 23 26 Total 54 49 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 $

Answer 1

Solutions plant wide predetermined Overhead rute - estimated tetal manufacturing overhead cet. ruemanufacturing overhead applied to job Bravo estimated total direct labos kours. 16200 000 240 DUO = 67.5 per DLH. The oveshead applied to job Bravo - Total Direct labor hours x pre determined over head rate 54X67.5 Assembly predetermined overhead rate - 150 ODO - 52 per DLH 36 Us 2) 7800 000 31 x 52 1612 fabrication predetermined overhead rate 840 0000 300 000 28 per MH

The manufacturing overhead applied to job Bravo =26828 = 728 3645 1) plant ulde manufacturing overhead applied to job Bravo Manufacturing overhead applied foom assembly to job Bravo Manufacturing overhead applied from fabrication to job Bravo Total depoustment manufacturing overhead applied 1612 728 to job Bravo 9340