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 $10,750 $15,450 $26,200 2,500 1,500 $ 1.70 2.50 Job P Job Q Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total $16,000 $9,500 $23,400 $8,700 2,000 900 2,900 1,100 1,200 2,300 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

Answer 1

7)
Total Manufacturing Cost	$64,195	$37,865
Markup = 80% x Total Manufacturing Cost	$51,356	$30,292
Total price for the job (a)	$115,551	$68,157
Number of units in the job (b)	20	30
Selling price per unit (rounded) (a) ÷ (b)	$5,778	$2,272
8)
Total manufacturing cost assigned to Job P	$64,195
Total manufacturing cost assigned to Job Q	$37,865
Cost of Good Sold	$102,060
9)
	Molding	Fabrication
Variable manufacturing overhead - Molding ($1.70 x 2500AMH) ;($2.50 x 1500 AMH)	$4,250	$3,750
Fixed Manufacturing over head	$10,750	$15,450
Estimated manufacturing overhead costs in Molding and Fabrication (a)	$15,000	$19,200
Estimated total machine-hours (MHs) (b)	2500	1500
Predetermined overhead rate (a) ÷ (b)	$6.00	$12.80	Per MH
10)
Applied overhead from Molding
Actual machine-hours worked (a)	2000	1100
Predetermined overhead rate per MH (b)	$6	$6
Manufacturing overhead applied (a) × (b)	$12,000	$6,600
11)
Applied overhead from Fabrication
Actual machine-hours worked (a)	900	1200
Predetermined overhead rate per MH (b)	$12.8	$12.8
Manufacturing overhead applied (a) × (b)	$11,520	$15,360
12) & 13)
	Job P	Job Q
Direct Material	$16,000	$9,500
Direct Labour	$23,400	$8,700
Manufacturing Overhead Applied	$11,520	$15,360
Molding	$12,000	$6,600
Fabrication	$11,520	$15,360
Total Manufacturing Cost	$74,440	$55,520
Units	20	30
Product per unit cost = Total manufacturing cost/ Units	$3,722	$1,851