Assume A Company Has Two Manufacturing Departments Assembly And Fabrication The Company Considers All Of Its Manufact 1 (29.28 KiB) Viewed 40 times
Assume A Company Has Two Manufacturing Departments Assembly And Fabrication The Company Considers All Of Its Manufact 2 (12.82 KiB) Viewed 40 times
Assume a company has two manufacturing departments - Assembly and Fabrication. The company considers all of its manufacturing overhead costs to be fixed costs. The first set of data below is budgeted data for the company as a whole that was estimated at the beginning of the year. The second set of data below is actual data for the company as a whole that was derived at the end of the year. The third set of data relates to one particular job completed during the year- Job Z. Budgeted Data Manufacturing overhead costs Direct labor hours. Machine hours Actual Data Manufacturing overhead costs Direct labor hours. Machine hours Job 2 Direct labor hours Machine hours. Assembly $ 300,000 25,000 10,000 Assembly 9.00 hours 1 hour Fabrication $ 400,000 15,000 50,000 Assembly $ 330,000 27,000 10,500 Fabrication $ 380,000 16,000 48,000 Fabrication 2 hours 6.00 hours Assume the company uses departmental predetermined overhead rates. It uses 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 from both departments to Job 2?
Multiple Choice O $145 $127 $156 $136
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