Sweeten Company had no jobs in progress at the beginning of March and no beginni
ID: 2609682 • Letter: S
Question
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 4,000 $12,250 $16,350 $28,600 2,500 1,500 $2.30 3.10 Job Q $22,000 $12,500 $28,200 $11,100 Job P Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 1,5001,800 3,500 2,600 4,100 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the montih 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 Foundational 2-2 2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate ralculatinns.Explanation / Answer
Molding Department:
Estimated MH used = 2,500
Variable Manufacturing Overhead per MH = $2.30
Fixed Manufacturing Overhead = $12,250
Estimated Manufacturing Overhead = Estimated MH used * Variable Manufacturing Overhead per MH + Fixed Manufacturing Overhead
Estimated Manufacturing Overhead = 2,500 * $2.30 + $12,250
Estimated Manufacturing Overhead = $18,000
Fabrication Department:
Estimated MH used = 1,500
Variable Manufacturing Overhead per MH = $3.10
Fixed Manufacturing Overhead = $16,350
Estimated Manufacturing Overhead = Estimated MH used * Variable Manufacturing Overhead per MH + Fixed Manufacturing Overhead
Estimated Manufacturing Overhead = 1,500 * $3.10 + $16,350
Estimated Manufacturing Overhead = $21,000
Total Estimated Manufacturing Overhead = Estimated Manufacturing Overhead (Molding Department) + Estimated Manufacturing Overhead (Fabrication Department)
Total Estimated Manufacturing Overhead = $18,000 + $21,000
Total Estimated Manufacturing Overhead = $39,000
Plantwide Predetermined Overhead Rate = Total Estimated Manufacturing Overhead / Total MH used
Plantwide Predetermined Overhead Rate = $39,000 / 4,000
Plantwide Predetermined Overhead Rate = $9.75 per MH
Job P:
Plantwide Predetermined Overhead Rate = $9.75 per MH
Number of MH used = 4,100
Manufacturing Overhead applied = Plantwide Predetermined Overhead Rate * Number of MH used
Manufacturing Overhead applied = $9.75 * 4,100
Manufacturing Overhead applied = $39,975
Job Q:
Plantwide Predetermined Overhead Rate = $9.75 per MH
Number of MH used = 3,500
Manufacturing Overhead applied = Plantwide Predetermined Overhead Rate * Number of MH used
Manufacturing Overhead applied = $9.75 * 3,500
Manufacturing Overhead applied = $34,125
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.