Question

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 Molding Fabrication Total 2,500 1,500 4,000 $10,000 $15,000 $25,000 $ 1.40 $ 2.20 Job P $13,000 $21,000 Job $8,000 $7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 2.300 800 900 1,700 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. 4. If Job Pincluded 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final ans to nearest whole dollar.) Unit product cost

Answer 1

Estimated variable manufacturing overhead	6800	=(2500*1.4)+(1500*2.2)
Estimated total fixed manufacturing overhead	25000
Estimated total manufacturing overhead	31800
Divide by Estimated total machine-hours used	4000
Plantwide predetermined overhead rate	7.95	per MH
	Job P
Direct materials	13000
Direct labor cost	21000
Manufacturing overhead applied	18285	=2300*7.95
Total manufacturing cost Job P	52285
4
Total manufacturing cost Job P	52285
Divide by units	20
Unit product cost	2614