The following intormation applies to the questions displayed below.) Sweeten Com

Question

The following intormation applies to the questions displayed below.) Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during March-Job P and Job Q. 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 machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabrication Total 2,500 1,500 4,000 $10,000 $15,000 $25,000 $ 1.40 $ 2.20 Job P $13,000 $21,000 Job 0 $8,000 $7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 | 2,300 800 900 1,700 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.

Explanation / Answer

Answer 14. Total Fixed Overhead    25,000.00 Variable MOH - Molding - $1.40 X 2,500 Mach Hrs      3,500.00 Variable MOH - Fabrication - $2.20 X 1,500 Mach Hrs      3,300.00 Total Overhead    31,800.00 Predetermined Overhead Rate = $31,800 (Total Overhead) / 4,000 Mach. Hrs. (Allocation Base) Predetermined Overhead Rate = $7.95 per Mach Hr. Job P Job Q Direct Materials    13,000.00      8,000.00 Direct Labor Costs    21,000.00      7,500.00 Overhead Applied: Job P - 2,300 mach hrs X $7.95    18,285.00 Job Q - 1,700 mach hrs X $7.95    13,515.00 Total Manufacturing Costs    52,285.00    29,015.00 Job P Job Q Total Manuacturing Costs    52,285.00    29,015.00 Add: Mark Up - 80% of Manufcaturing Costs    41,828.00    23,212.00 Selling Price    94,113.00    52,227.00 No. of Units            20.00            30.00 SP per Unit      4,705.65      1,740.90

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