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 DataMachiningAssemblyTotalManufacturing
overhead$12,500,000 $625,000 $13,125,000 Direct labor hours
25,000 500,000 525,000 Machine hours
500,000 20,000 520,000
Job AMachiningAssemblyTotalDirect labor
hours51015Machine hours11213
Job BMachiningAssemblyTotalDirect labor hours459Machine
hours12315
Required:
1. If Mason Company uses a plantwide predetermined overhead rate
with direct...