Question

Required information The Foundational 15 (LO2-1, LO2-2, LO2-3, LO2-4) [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. 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 2,500 1,500 4,000 $13,250 $16,950 $30,200 Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 2.70 $ 3.50 Job P $26,000 $31,400 Job $14,500 $12,700 Direct materials Direct labor cost Actual machine- hours used: Molding Fabrication Total 3,000 1,900 4,900 2,100 2,200 4,300 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. Foundational 2-10 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.) Job P Job Q Manufacturing overhead applied

Answer 1

Solution 10:

Computation of departmental overhead rates
Particulars	Molding	Fabrication
Fixed manufacturing overhead	$13,250	$16,950
Variable manufacturing overhead	$6,750	$5,250
Total manufacturing overhead	$20,000	$22,200
Nos of machine hours	2500	1500
Overhead rate per machine hour	$8.00	$14.80

Computation of overhead applied from Molding department
Particulars	Job P	Job Q
Actual machine hours	3000	2100
Overhead rate	$8.00	$8.00
Overhead applied to jobs	$24,000.00	$16,800.00

Solution 11:

Computation of overhead applied from Fabrication department
Particulars	Job P	Job Q
Actual machine hours	1900	2200
Overhead rate	$14.80	$14.80
Overhead applied to jobs	$28,120.00	$32,560.00

Solution 12 & 13:

Compuatation of manufacturing cost and cost per unit assigned to Job
Particulars	Job P	Job Q
Direct Material	$26,000.00	$14,500.00
Direct Labor	$31,400.00	$12,700.00
Manufacturing overhead	$52,120.00	$49,360.00
Total Manufacturing cost	$109,520.00	$76,560.00
Nos of units	20	30
Cost per unit	$5,476.00	$2,552.00

Solution 14:

Compuatation of Total price and per unit price of job
Particulars	Job P	Job Q
Manufacturing Cost	$109,520.00	$76,560.00
Markup (80%)	$87,616.00	$61,248.00
Total price of job	$197,136.00	$137,808.00
Nos of units	20	30
Selling price per unit	$9,857	$4,594

Solution 15:

Sweeten company's cost of goods sold = $109,520 + $76,560 = $186,080