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1) What is the company’s predetermined overhead rate? (Round your answers to 2 d

ID: 2563623 • Letter: 1

Question

1) What is the company’s predetermined overhead rate? (Round your answers to 2 decimal places.)

2) How much manufacturing overhead was applied to Job P and Job Q? (Round your intermediate calculations to 2 decimal places.

3) What is the direct labor hourly wage rate?

4A) If Job P includes 20 units, what is its unit product cost?

4B) What is the total amount of manufacturing cost assigned to Job Q as of the end of March (including applied overhead)?

1) What is the company’s predetermined overhead rate? (Round your answers to 2 decimal places.)

2) How much manufacturing overhead was applied to Job P and Job Q? (Round your intermediate calculations to 2 decimal places.

3) What is the direct labor hourly wage rate?

4A) If Job P includes 20 units, what is its unit product cost?

4B) What is the total amount of manufacturing cost assigned to Job Q as of the end of March (including applied overhead)?

Foundational [LO3-1, LO3-2, LO3-3, LO3-4, L03-5, LO3-6, LO3-7 [The following information applies to the questions displayed below.] 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 Estimated variable manufacturing overhead per direct labor-hour Estimated total direct labor-hours to be worked Total actual manufacturing overhead costs incurred $14,800 $1.60 3,700 $21,000 Direct materials Direct labor cost Actual direct labor-hours worked Job PJob Q $ 21,500 $ 9,700 $44,800 $12,000 2,800750

Explanation / Answer

1) predetermined overhead rate fixed overhead rate (14,800/3,700)= 4 Variable manufacturing overhead rate 1.6 predetermined overhead rate 5.6 2) Manufacturing overhead applied to Job P (2,800*5.6) 15680 Job Q (750*5.6) 4200 3) Direct labor hourly wage rate = 44,800/2800= 16 per DLH's 4-A) Job P Direct materials 21,500 direct labor 44,800 overhead applied 15,680 Total cost 81,980 unit product cost = 81,980/20 4099 4B0 total amount of manufacturing cost Direct materials 9,700 direct labor 12,000 overhead applied 4,200 Total cost 25,900