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  3. assume a company has two manufacturing departments

Assume a company has two manufacturing departments Assembly and Fabrication. The company considers all...

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Accounting

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 Assembly Fabrication
Manufacturing overhead costs $ 300,000 $ 400,000
Direct labor hours 25,000 15,000
Machine hours 10,000 50,000

Actual Data Assembly Fabrication
Manufacturing overhead costs $ 330,000 $ 380,000
Direct labor hours 27,000 16,000
Machine hours 10,500 48,000

Job Z Assembly Fabrication
Direct labor hours 10.00 hours 2 hours
Machine hours 1 hour 7.00 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 Z?

Multiple Choice

$146

$156

$166

$176

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