Question

Help Sweeten company lidu 10 JOUS II progress allie Deynny Or IVILICI ITU TID 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 Job Q $13,000 $8,000 $21,000 $7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 2,300 800 900 1,700 < Prev 4 5 6 11 of 11 !!! Next >

Answer 1

Variable Overhead = ($1.40*2500) + ($2.20*1500)
	=$6800
Total Overhead = $6800+25000 =$31800
The plantwide predetermined overhead rate
= Total overhead / Total Number of Machine Hours
=$31800/4000
=$7.95 per MH
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