Question

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	$	2,850,000	$	3,230,000	$	6,080,000
Direct labor-hours		95,000		57,000		152,000
Machine-hours		38,000		190,000		228,000

Job Bravo	Assembly	Fabrication	Total
Direct labor-hours	20	12	32
Machine-hours	12	15	27

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 calculations 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

1
Total Manufacturing overhead costs	6080000
Divide by Direct labor-hours	152000
Plantwide predetermined overhead rate	40
Plantwide manufacturing overhead applied to Job Bravo	1280	=32*40
2
Departmental predetermined overhead rates:
Assembly	30	=2850000/95000
Fabrication	17	=3230000/190000
Manufacturing overhead applied from Assembly to Job Bravo	600	=20*30
Manufacturing overhead applied from Fabrication to Job Bravo	255	=15*17
Total departmental manufacturing overhead applied to Job Bravo	855