Mason Company has two manufacturing departments$$Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following information with respect to Jobs A and B:

Estimated Data Machining Assembly Total

Manufacturing overhead $ $12,500,000$ $ $625,000$ $ $13,125,000$

Direct labor$-$hours $25,000500,000525,000$

Machine$-$hours $500,00020,000520,000$

Job A Machining Assembly Total

Direct labor$-$hours $51015$

Machine$-$hours $11213$

Job B Machining Assembly Total

Direct labor$-$hours $459$

Machine$-$hours $12315$

Required:

$1.$ If Mason Company uses a plantwide predetermined overhead rate with direct labor$-$hours as the allocation base, how much manufacturing overhead cost would be applied to Job A$?$ Job B$?$

$2.$ Assume that Mason Company uses departmental predetermined overhead rates. The Machining Department is allocated based on machine$-$hours and the Assembly Department is allocated based on direct labor$-$hours. How much manufacturing overhead cost would be applied to Job A$?$ Job B$?($For Requirement $2,$ round your intermediate calculations and final answers to $2$ decimal places.$)$

Answer rating: 100% (QA)

1 If Mason Company uses a plantwide predetermined overhead rate with direct laborhours as the allocation base we need to calculate the predetermined overhead rate first Total estimated manufacturing o... View the full answer