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 DataAssemblyFabricationTotalManufacturing overhead costs$7,250,000$7,830,000$15,080,000Direct labor-hours 145,000 87,000 232,000Machine-hours 58,000 290,000 348,000  Job BravoAssemblyFabricationTotalDirect labor-hours302252Machine-hours222547  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.)

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Asked Sep 27, 2019
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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 $ 7,250,000 $ 7,830,000 $ 15,080,000
Direct labor-hours   145,000   87,000   232,000
Machine-hours   58,000   290,000   348,000
 

 

Job Bravo Assembly Fabrication Total
Direct labor-hours 30 22 52
Machine-hours 22 25 47
 

 

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.)

 

 

 

 

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(1) Manufacturing overhead applied to job bravo is as follows: Estim ated Total Manufacturing Plant wide overhead costs manufacturing Estim ated Total Direct labor -hours overhead S15,080,000 232, 000 -S65 Manufacturing overhead rate applied to job bravo is as follows: Manufacturing overhead (Predetermined overhead rate)x (Direct labor hours) appllied to Job bravo =(S65)x(52) =S3,380 Therefore, manufacturing overhead rate applied to job bravo is S3.380

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