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):

	Molding			Fabrication			Total
Estimated total machine-hours used		2,500			1,500			4,000
Estimated total fixed manufacturing overhead	$	14,750		$	17,850		$	32,600
Estimated variable manufacturing overhead per machine-hour	$	3.30		$	4.10

	Job P			Job Q
Direct materials	$	32,000		$	17,500
Direct labor cost	$	36,200		$	15,100
Actual machine-hours used:
Molding		3,600			2,700
Fabrication		2,500			2,800
Total		6,100			5,500

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.

2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

Answer 1

Predetermined fixed manufacturing overhead rate per machine hours
= Total Cost / Total MachineHours
=$32600/4000
=$8.15 per machine hours	8.15
manufacturing overhead was applied to Job P and how much was applied to Job Q
	Job P	Job Q
Fixed Overhead	$                                                              49,715	$                                         44,825
	($8.15*6100)	($8.15*5500)
Variable Overheads	$                                                              22,130	$                                         20,390
	[($3.30*3600)+($4.10*2500 hours)	[($3.30*2700)+($4.10*2800 hours)
Total Mgf Overhead Applied	$                                                              71,845	$                                         65,215