Business, 11.02.2020 17:17 novarosell

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 Assembly Fabrication TotalManufacturing overhead costs $4,370,000 $4,830,000 $9,200,000Direct labor-hours 115,000 69,000 184,000Machine-hours 46,000 230,000 276,000Job Bravo Assembly Fabrication TotalDirect labor-hours 24 16 40Machine-hours 16 19 35Required:1. Assume Wilmington uses a plantwide predetermined overhead rate based on direct labor-hours. Calculate the predetermined overhead rate and the amount of manufacturing overhead applied to Job Bravo.2. Assume 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. Calculate the predetermined overhead rate for each department and the manufacturing overhead applied to Job Bravo using departmental rates.3. Do you recommend that Wilmington use a plantwide overhead rate or departmental overhead rates? Why?

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Wilmington Company has two manufacturing departments--Assembly and Fabrication. It considers all of...

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