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Sweeten Company had no jobs in progress at the beginning of March and no beginni

ID: 2609696 • 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 2,600 1,500 4·100 1,700 1,800 3,500 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 Foundational 2-11 11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?

Explanation / Answer

Fabrication department predetermined overhead rate = $16350/1500 = $10.90

Manufacturing overhead from Fabrication department applied to:

Job P: 1800 x $10.90 = $19620

Job Q: 1500 x $10.90 = $16350