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. It started only two jobs during March-Job P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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 fixed manufacturing overhead Estimated variable manufacturing overhead per direct labor-hour Estimated total direct labor-hours to be worked Total actual manufacturing overhead costs incurred 15,000 2.00 3,000 19,000 $ Direct materials Direct labor cost Actual direct labor-hours worked Job P Job Q $ 19,500 $ 9,000 $ 31,500 $ 7,500 2,100 500

Answer 1

Overhead rate = (15000/3000+2) = 7 per labor hour

4a) Calculate unit product cost of Job P

Direct material	19500
Direct labor	31500
Overhead (2100*7)	14700
Total Job Cost	65700
Unit	30
Unit product cost	2190

4b) Calculate unit product cost of Job Q

Direct material	9000
Direct labor	7500
Overhead (500*7)	3500
Total Job Cost	20000