Question: Problem 3-21 (Algo) Plantwide Versus Multiple Predetermined Overhead Rates [LO3-1, LO3-2 4 Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of
Problem 3-21 (Algo) Plantwide Versus Multiple Predetermined Overhead Rates [LO3-1, LO3-2 4 Mason Company has two manufacturing departments-Machining and Assembly. The company considers all of its manu overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the following with respect to Jobs A and B: Assembly $169,000 104,000 8,000 Total $1,521,000 117,000 112,000 Machining $1,352,000 13,000 104,000 Estimated Data Manufacturing overhead Direct labor hours Machine hours ok Machining As sembly Total Job A Direct labor hours Machine hours 10 15 13 11 2 nt Machining Assembly Total Job B 9 4 Direct labor hours 3 15 nces Machine hours 12 Required: 1. If Mason Company uses a plantwide predetermined overhead rate with direct labor-hours as the allocation base, how manufacturing overhead cost would be applied to Job A? Job B? (Round your answers to the nearest whole dollar an 2. Assume that Mason Company uses departmental predetermined overhead rates. The Machining Department is allo machine-hours and the Assembly Department is allocated based on direct labor-hours. How much manufacturing over be applied to Job A? Job B? (Round your intermediate calculations and final answers to 2 decimal places.) 1. Manufacturing overhead applied Job A Manufacturing overhead applied Job B 2 Manufacturing overhead applied Job A Manufacturing overhead applied Job B Next> 4 of 5
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