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. 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): Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Her er machine-hour Molding Fabrication Total 2,500 1,500 4,000 $14,500 $17,700 $32,200 $ 3.20 $ 4.00 Job P $31,000 $35,400 Job Q $17,000 $14,700 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 3,500 2,400 5,900 2,600 2,700 5,300 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Answer 1

1)	Company's plant wide predetermined overhead rate :
	plant wide predetermined overhead rate = Estimated total overhead / Estimated total machine hours
	To calculate the estimated total overhead :
	Particulars	Amount($)	Amount($)
	Estimated total fixed manufacturing overhead		$ 32,200
	variable manufacturing overhead
	Molding ( 2500 machine hours * $ 3.20 )	$ 8,000
	Fabrication ( 1500 machine hours * $ 4.00 )	$ 6,000	$ 14,000
	Estimated total overhead		$ 46,200
	plant wide predetermined overhead rate = Estimated total overhead / Estimated total machine hours
	Plant wide predetermined overhead rate = $ 46,200 / 4000 machine hours
	Plant wide predetermined overhead rate = $ 11.55 per machine hour
2)	To calculate Manufacturing overhead applied to Job P and Job Q :
	Job P = predetermined overhead rate * Actual Total machine hours of Job P
	Job P = $ 11.55 Per machine hour * 5900 Machine hours
	Job P = $ 68,145
	Job Q = predetermined overhead rate * Actual Total machine hours of Job Q
	Job Q = $ 11.55 Per machine hour * 5300 Machine hours
	Job Q = $ 61,215
	Hence, Manufacturing overhead applied to Job P is $ 68,145 , Manufacturing overhead applied to Job Q is $ 61,215

3)	To calculate the Total manufacturing cost assigned to Job P :
	Particulars	Amount($)
	Direct material	$ 31,000
	Direct labor	$ 35,400
	Manufacturing overhead ( see required 2 )	$ 68,145
	Total manufacturing cost assigned to Job P	$ 134,545
4)	If Job P included 20 units , what was its unit product cost :
	Unit product cost =   Total manufacturing cost assigned to Job P / Total units
	Unit product cost =   $ 134,545 / 20 units
	Unit product cost =   $ 6,727.25 per unit.