Assume a company started and completed numerous jobs during July—two of which were Job Y and Job Z. The company uses two departmental predetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Department is based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Y and Z: MachiningAssemblyEstimated total fixed manufacturing overhead$ 48,000$ 30,000Estimated variable manufacturing overhead per machine-hour$ 1.50 Estimated variable manufacturing overhead per direct labor-hour $ 2.00Estimated total machine-hours to be used12,000 Estimated total direct labor hours to be worked 10,000 MachiningAssemblyJob Y Machine-hours43 Direct labor-hours 30Job Z Machine-hours40 Direct labor-hours 60How much manufacturing overhead is applied from the Machining Department to Job Y?

Machine Hour rate = Here a machine is identified as a cost center. All related expenses are…

Answered: Assume a company started and completed…

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...

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Assume a company started and completed numerous jobs during July—two of which were Job Y and Job Z. The company uses two departmental predetermined overhead rates. The rate in the Machining Department is based on machine-hours and the rate in the Assembly Department is based on direct labor-hours. The following additional information from the month of July is available for the company as a whole and for Jobs Y and Z:

	Machining	Assembly
Estimated total fixed manufacturing overhead	$ 48,000	$ 30,000
Estimated variable manufacturing overhead per machine-hour	$ 1.50
Estimated variable manufacturing overhead per direct labor-hour		$ 2.00
Estimated total machine-hours to be used	12,000
Estimated total direct labor hours to be worked		10,000

	Machining	Assembly
Job Y
Machine-hours	43
Direct labor-hours		30
Job Z
Machine-hours	40
Direct labor-hours		60

How much manufacturing overhead is applied from the Machining Department to Job Y?

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