Problem 2-21 (Algo) Plantwide Versus Multiple Predetermined Overhead Rates [LO2-1, LO2-2] Mason Company has two manufacturing departments-Machining and Assembly. The company considers 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 Job A Direct labor-hours Machine-hours Job B Direct labor-hours Machine-hours Machining $1,764,000 14,000 126,000 Machining Assembly 5 11 1. Manufacturing overhead applied Job A 1. Manufacturing overhead applied Job B 2. Manufacturing overhead applied Job A 2. Manufacturing overhead applied Job B Assembly Total $196,000 $1,960,000 126,000 9,000 10 2 Machining Assembly 4 12 Total 15 13 Total 9 15 140,000 135,000 Required: If Mason Company uses a plantwide predetermined overhead rate with direct labor-hours as the allocation base, how much manufacturing overhead cost would be applied to Job A? Job B? 2. Assume that Mason Company uses departmental predetermined overhead rates. The Machining Department is allocated based on machine-hours and the Assembly Department is allocated based on direct labor-hours. How much manufacturing overhead cost would De applied to Job A? Job B? (For Requirement 2, round your intermediate calculations and final answers to 2 decimal places.)
Problem 2-21 (Algo) Plantwide Versus Multiple Predetermined Overhead Rates [LO2-1, LO2-2] Mason Company has two manufacturing departments-Machining and Assembly. The company considers 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 Job A Direct labor-hours Machine-hours Job B Direct labor-hours Machine-hours Machining $1,764,000 14,000 126,000 Machining Assembly 5 11 1. Manufacturing overhead applied Job A 1. Manufacturing overhead applied Job B 2. Manufacturing overhead applied Job A 2. Manufacturing overhead applied Job B Assembly Total $196,000 $1,960,000 126,000 9,000 10 2 Machining Assembly 4 12 Total 15 13 Total 9 15 140,000 135,000 Required: If Mason Company uses a plantwide predetermined overhead rate with direct labor-hours as the allocation base, how much manufacturing overhead cost would be applied to Job A? Job B? 2. Assume that Mason Company uses departmental predetermined overhead rates. The Machining Department is allocated based on machine-hours and the Assembly Department is allocated based on direct labor-hours. How much manufacturing overhead cost would De applied to Job A? Job B? (For Requirement 2, round your intermediate calculations and final answers to 2 decimal places.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter2: Job Order Costing
Section: Chapter Questions
Problem 4BE: Applying factory overhead Bergan Company estimates that total factory overhead costs will be 620,000...
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
vj
subject-Accounting
![Problem 2-21 (Algo) Plantwide Versus Multiple Predetermined Overhead Rates [LO2-1, LO2-2]
Mason Company has two manufacturing departments-Machining and Assembly. The company considers 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
Job A
Direct labor-hours
Machine-hours
Job D
Direct labor-hours
Machine-houre
Machining. Assembly
$1,764,000
$196,000
Machining Assembly
5
10
14,000
126,000
11
1. Manufacturing overhead applied Job A
1 Manufacturing overhead applied Job B
2. Manufacturing overhead applied Job A
2. Manufacturing overhead applied Job B
2
Machining Assembly
12
126,000
9,000
Total
15
13
Total
9
15
Total
$1,960,000
140,000
135,000
Required:
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 applied to Job A? Job B?
2. Assume that Mason Company uses departmental predetermined overhead rates. The Machining Department is allocated based on
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? (For Requirement 2, round your intermediate calculations and final answers to 2 decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc7fe5a73-45e4-4166-8ba1-50e355550dfc%2F96a28731-a08b-4af9-979b-587ff5dc4249%2Fycncfhd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 2-21 (Algo) Plantwide Versus Multiple Predetermined Overhead Rates [LO2-1, LO2-2]
Mason Company has two manufacturing departments-Machining and Assembly. The company considers 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
Job A
Direct labor-hours
Machine-hours
Job D
Direct labor-hours
Machine-houre
Machining. Assembly
$1,764,000
$196,000
Machining Assembly
5
10
14,000
126,000
11
1. Manufacturing overhead applied Job A
1 Manufacturing overhead applied Job B
2. Manufacturing overhead applied Job A
2. Manufacturing overhead applied Job B
2
Machining Assembly
12
126,000
9,000
Total
15
13
Total
9
15
Total
$1,960,000
140,000
135,000
Required:
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 applied to Job A? Job B?
2. Assume that Mason Company uses departmental predetermined overhead rates. The Machining Department is allocated based on
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? (For Requirement 2, round your intermediate calculations and final answers to 2 decimal places.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning