Question

# Wilmington Company has two manufacturing departments—Assembly and Fabrication. It considers all of its manufacturing overhead costs...

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

 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

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