Help with the second question Mason Company has two manufact

Help with the second question.

Mason Company has two manufacturing departments-Machining and Assembly. The company conslders 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 Manufacturing overhead Direct labor hours Machine hours Machining Assembly $4,212,0e0 324,000 $4,536,9ee Total 18,98e 234,00e 234,98e 13,0ee 252,800 247,8ee Job A Direct labor hours Machine hours Machining Assembly Total 1e 15 13 Job B Direct labor hours Machine hours Machining Assembly Total 12 15 Requirec 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 appled to Job A? Job B? (Round your answers to the nearest whole dollar amount.) 2. Assume that Mason Company uses departmental predetermined overhead rates. The Machining Department is allocated based or 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? (Round your Intermediate calculatlons 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 S 270 S 162

Solution

2 Overhead rate Machining department = 4212000/234000= 18.00 Overhead rate Assembly department = 324000/234000= 1.38 Manufacturing overhead applied to Job A = (11*17.05)+(10*1.38)= 201.35 Manufacturing overhead applied to Job B = (12*17.05)+(5*1.38)= 211.50