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Homework answers / question archive / Wilmington Company has two manufacturing departments--Assembly and Fabrication

Wilmington Company has two manufacturing departments--Assembly and Fabrication

Management

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 $6,210,000 $6,750,000 $12,960,000

Direct labor-hours  135,000  81,000  216,000

Machine-hours  54,000  270,000  324,000

 

Job Bravo Assembly Fabrication Total

Direct labor-hours 28 20 48

Machine-hours 20 23 43

 

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

3 - manufacturing overhead applied from fabrication to job bravo

4 - total departmental manufacturing overhead applied to job bravo

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