Question: Estimated Data Manufacturing overhead Direct labor hours Machine hours Machining $ 500,000 10,000 50,000 Assembly $100,000 50,000 5,000 Totall $ 600,000 60,000 55,000 Job A

Estimated Data Manufacturing overhead Direct labor hours Machine hours Machining $ 500,000 10,000 50,000 Assembly $100,000 50,000 5,000 Totall $ 600,000 60,000 55,000 Job A Direct labor hours Machine hours Machining Assembly 10 Total 15 13 Machining Assembly Total Job B Direct labor hours Machine hours 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
