Question

TURUT MULUT ONE WE YULTS USEU LUM Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has cation. 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 Molding Fabrication Total 2,500 1,500 4,000 $11,500 $15,900 $27,400 $ 2.00 $ 2.80 Job $19,000 $25,800 Job O $11,000 $ 9,900 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,300 1,200 3,500 1.400 1,500 2,900 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. 9. What were the company's predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.) Predetermined Overhead Rate Molding Department Fabrication Department per MH

Answer 1

9) Predetermined overhead rate= (Estimated total fixed overhead/ estimated total machine hours)+ Estimated total variable manufacturing overhead per hour

Molding= $11500/2500+$2.00= $6.60 per MH

Fabrication= $15900/1500+$2.80= $13.40 per MH

10) Calculation of Manufacturing overhead applied from the Molding department

Job P= 2300*$6.60= $15180

Job Q= 1400*$6.60= $9240

	Job P	Job Q
Manufacturing overhead applied	$15180	$9240

11) Calculation of Manufacturing overhead applied from the Fabricating department

Job P= 1200*$13.40= $16080

Job Q= 1500*$13.40= $20100

	Job P	Job Q
Manufacturing overhead applied	$16080	$20100