Homework SourseWilmington Company has two manufacturing departmentsAssembly
Wilmington Company has two manufacturing departments-Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year-Job Bravo. Estimated Data Manufacturing overhead costs $6,210,000 $6,750,000 $12,960,000 Direct labor-hours Machine-hours Assembly Fabrication Total 135,000 81,000 54,008 270,800 216,000 324,000 Assembly Fabrication Total Job Bravo Direct labor-hours Machine-hours 28 20 20 23 48 43 Required: 1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo? 2. If Wilmington uses departmental predetermined overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much manufacturing overhead would be applied to Job Bravo? (Round your intermediate calculation to 2 decimal places.) 
Solution
1. Plantwise Manufacturing overhead rate based on direct labor hours Rate= $ 12,960,000/ 216,000 hours = $ 60 per hour Overheads applied to Job Bravo= $ 60 per direct labor hour X 48 hours = $ 2,880 2. Departmental Manufacturing overhead rate based on direct labour hours Assembly= $ 6,210,000/ 135,000 direct labor hours = $ 46 per hour Fabrication= $ 6,750,000/ 270,000 machine hours = $ 25 per hours Manufacturing cost to be applied to Job Bravo Assembly= $46 per hour X 28 direct labor hours = $ 1,288 Fabrication= $ 25 per hour X 23 machine hours = $ 575 1. Plantwise manufacturing overhead applied to Job Bravo $2,880 2. Manufacturing overhead applied from assembly to Job Bravo $1,288 Manufacturing overhead applied from Facbrication to Job Bravo $575 Total Departmental manufacturing overhead applied to Job Bravo $1,863