Foundational 2-1 Sweeten Company had no jobs in progress at the beginning of Mar

Question

Foundational 2-1 Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March): Estimated total fixed manufacturing overhead $ 10,000 Estimated variable manufacturing overhead per direct labor-hour $ 1.00 Estimated total direct labor-hours to be worked 2,000 Total actual manufacturing overhead costs incurred $ 12,500 Job P Job Q Direct materials

Explanation / Answer

Given data is not cleared about data. Here, manufacturing overherad to job P and Q is calculated as follows:

Plantwide Predetermined overhead rate = Estimated total fixed overhead/Estimated total direct labor hour + Estimated variable Manufacturing overhead rate per hour

Plantwide Predetermined overhead rate = 10,000/2000 + 1.00

Plantwide Predetermined overhead rate = $ 6.00 per DLH

Manufacturing overhead was applied to Job P = Plantwide Predetermined overhead rate * Actual Direct Labor Hour worked

Manufacturing overhead was applied to Job P = 2000*6 (2000 labor hours not given,assumed figure)

Manufacturing overhead was applied to Job P = $ 2,000

Manufacturing overhead was applied to Job Q = Plantwide Predetermined overhead rate * Actual Direct Labor Hour worked

Manufacturing overhead was applied to Job Q = 1,000*6 (1000 labor hours not given,assumed figure)

Manufacturing overhead was applied to Job Q = $ 1,000

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