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Assume a company started and completed numerous jobs during July—two of which we
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:
MachiningAssembly
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 used12,000
Estimated total direct labor hours to be worked 10,000
MachiningAssembly
Job Y
Machine-hours36
Direct labor-hours 30
Job Z
Machine-hours40
Direct labor-hours 60
How much manufacturing overhead is applied from the Machining Department to Job Y?
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