Question

Analytical Review: Michelleine A. Manufacturing Inc Michelleine A. LLC. 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 O (all data and questions relate to the month of March): Molding Total Fabrication Estimated total machine-hours used 2,500.00 3,000.00 5,500.00 Estimated total fixed manufacturing overhead 15,000.00 12,000.00 27,000.00 Estimated variable manufacturing overhead per machine- 1.50 2.25 hour Job D-70: Job P Job Q Direct materials cost 8,000.00 13,000.00 7,500.00 Direct labor cost 21,000.00 Actual Machine-hours Used 800.00 1,700.00 Molding 600.00 900.00 Fabrication 2,300.00 1,700.00 Total Michelleine had no underapplied or overapplied manufacturing overhead during the year. Page 2-11 Dr. Daniel Aoheampong. CPA Spring 2020

Answer 1

Predetermined overhead for the whole plant:

Variable manufacturing overheads	3750	6750	10500
	[2500*1.5]	[3000*2.25]
Fixed manufacturing overheads	12000	15000	27000
Total			37500
No of machine hours			5500
Estimated machine hour rate for overheads			6.82

2.4

	Job P
Direct materials cost	13000
Direct labor cost	21000
Manufacturing overhead	15686
	[2300*6.82]
Total manufacturing costs	49686
Cost per unit [Cost / 20]	2484.3

2.5

	Job P	Job Q
Total manufacturing costs	49686	27094
Mark up (80%)	39749	21675
Selling price	89435	48769
No of units produced	20	30
Selling price per unit	4471.74	1625.64

2.6

Cost of goods sold = 15686+11594 = 27280

2.7

Variable manufacturing overheads	3750	6750	10500
	[2500*1.5]	[3000*2.25]
Fixed manufacturing overheads	12000	15000	27000
Total			37500
No of machine hours			5500
Estimated machine hour rate for overheads			6.82

2.8

	Job P	Job Q
Manufacturing overhead	15686	11594
	[2300*6.82]	[1700*6.82]

2.9

	Job P
Direct materials cost	13000
Direct labor cost	21000
Manufacturing overhead	15686
	[2300*6.82]
Total manufacturing costs	49686
Cost per unit [Cost / 20]	2484.3

2.10

	Job P	Job Q
Total manufacturing costs	49686	27094
Mark up (80%)	39749	21675
Selling price	89435	48769
No of units produced	20	30
Selling price per unit	4471.74	1625.64