Question

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

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):

Molding Fabrication Total
Estimated total machine-hours used 2,500 1,500 4,000
Estimated total fixed manufacturing overhead $ 14,250 $ 17,550 $ 31,800
Estimated variable manufacturing overhead per machine-hour $ 3.10 $ 3.90
Job P Job Q
Direct materials $ 30,000 $ 16,500
Direct labor cost $ 34,600 $ 14,300
Actual machine-hours used:
Molding 3,400 2,500
Fabrication 2,300 2,600
Total 5,700 5,100

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.

10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

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Answer #1

Calculate overhead rate :

Molding department = (14250/2500)+3.10 = $8.80 per machine hour

Fabrication department = (17550/1500)+3.90 = $15.60 per machine hour

10) Overhead applied

Job P = (3400*8.80+2300*15.60) = $65800

Job Q = (2500*8.80+2600*15.60) = $62560

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