Mason Company has two production departments: Machining and Assembly. The company considers all general production costs to be fixed costs. At the beginning of the year, it provided the following information regarding Jobs A and B, along with the following forecasts:

Estimated Data	processing			Meeting			Total
Production load	$	2,250,000		$	225,000		$	2,475,000
Direct labor hours		15,000			150,000			165,000
machine clocks		150,000			10,000			160,000

Job A	processing	Meeting	Total
Direct labor hours	5	10	15
machine clocks	11	2	13

Business B	processing	Meeting	Total
Direct labor hours	4	5	9
machine clocks	12	3	15

Necessary:

1. If Mason Company uses a predetermined factory-wide overhead rate with direct hours of work as the basis for distribution, how much production overhead is charged to Job A? Business B? (Round your answers to the nearest whole dollar amount.)

2. Suppose Mason Company uses department-predetermined overhead rates. Machining Department is allocated according to machine hours, Assembly Department is allocated according to direct labor hours. How much production overhead is applied to Job A? Job B? (Round your intermediate calculations and final answers to 2 decimal places.)

Answer rating: 100% (QA)

1 Factorywide overhead rate Estimated total production load Estimated total direct labor hours Factorywide overhead rate 2475000 165000 15 per direct ... View the full answer