Question

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. It started only two Jobs during March-Job P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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 fixed manufacturing overhead Estimated variable manufacturing overhead per direct labor-hour Estimated total direct labor-hours to be worked Total actual manufacturing overhead costs incurred $ 16,000 $ 1.90 4.000 $ 22,200 Direct materials Direct labor cost Actual direct labor-hours worked Job P Job Q $ 22,700 $ 8,500 $ 58,900 $ 10,450 3.100 550

Answer 1

Predetermined Overhead rate = Estimated Overheads/Estimated Labor hours
=16000/4000+1.90
=$5.9 per labor hour
Calculation of unit product cost
	P	Q
Direct material	22,700	8,500
Direct labor	58,900	10,450
Applied Overhead	18,290	3,245
Total manufacturing cost	99,890	22,195
Number of units	35
Unit product cost	2,854
4-a. Unit cost = $2854
4-b Total manufacturing cost = $22,195