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 $14,500 Estimated total machine-hours used 1,500 4,000 $32,200 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $17,700 2$ 4.00 24 3.20 Job P Job 0 Direct materials $31,000 $35,400 $17,000 $14,700 Direct labor cost Actual machine-hours used: Molding 3,500 2,400 5,900 2,600 2,700 Fabrication 5,300 Total 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

	Molding	Fabrication	Total
Estimated total machine hours used	2500	1500	4000
(*) Estimated variable manufacturing overhead per machine hour	3.20	4.00
Estimated total variable manufacturing overhead	8000	6000	14000
Estimated total fixed manufacturing overhead	14500	17700	32200
Estimated total manufacturing overhead	22500	23700	46200

Plantwide predetermined overhead rate = Estimated total manufacturing overhead / Estimated total machine hours used = 46200 / 4000

11.55

per MH

	Job P	Job Q
Total actual machine hours used	5900	5300
Plantwide predetermined overhead rate	11.55	11.55
Manufacturing overhead applied	68145	61215

Required 7 :
	Job P	Job Q
Direct materials	31000	17000
Direct labor cost	35400	14700
Manufacturing overhead applied	68145	61215
Total manufacturing cost	134545	92915
(+) markup @ 80%	107636	74332
Total price for the job	242181	167247
(/) Units produced	20	30
Selling price per unit	12109	5575