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Connect er 2 6 Help Wilmington Company has two manufacturing departments-Assembl

ID: 2609284 • Letter: C

Question

Connect er 2 6 Help 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 Manufacturing overhead costs 1,920,6DD $2,240,000 $ 4.160,000 128,000 Hachine- 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 departmerntal predetermined overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the alocation base in Fabrication, how much manufacturing overhead would be applied to Job Bravo? (Round your intermediate calculation to 2 decimal places.) 1 Plantwide manfacturing overhead applied to Job Bravo 2. Manufacturing overhead applied from Assembly to Job Bravo Manufacturing overhead applied trom Fabrication to Job Bravo Total departmental manufacturing overhead applied to Job Bravo MacBook Air

Explanation / Answer

Predetermined Plant wide overhead for Bravo:

Estimated total manufacturing overhead

$               4,160,000

÷Estimated total direct labor hours

                   128,000

Predetermined overhead rate per DLH

$                       32.50

Total direct labor hour required for Bravo

26

x Predetermined overhead rate per DLH

$                     32.50

Overhead applied to Bravo

$                     845

                             

Predetermined overhead rate for Bravo Assembly:

Estimated manufacturing overhead

$               1,920,000

÷Estimated direct labor

                        80,000

Predetermined overhead rate per DLH

$                             24

Predetermined overhead rate for Bravo Fabrication:

Estimated manufacturing overhead

$               2,240,000

÷Estimated machine hours

                      160,000

Predetermined overhead rate per MH

$                             14

Overhead Applied to Job Bravo:

Assembly

Fabrication

Total

Quantity of allocation base used

17

12

x Predetermined overhead rate

$     24

$   14

Overhead applied to Bravo

$     408

$   168

$   576

Answer:

1

Plant wide manufacturing overhead applied to Job Bravo

$ 845

2

Manufacturing overhead applied from Assembly to job Bravo

$ 408

Manufacturing overhead applied from Fabrication to job Bravo

$ 168

Total departmental manufacturing overhead applied to job Bravo

$ 576

Estimated total manufacturing overhead

$               4,160,000

÷Estimated total direct labor hours

                   128,000

Predetermined overhead rate per DLH

$                       32.50

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