Question

Required information The Foundational 15 (LO2-1, LO2-2, LO2-3, LO2-4) The following information applies to the questions displayed below) rt 3 of 11 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 (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 Holding Fabrication Total 2,500 1,500 4.000 $11,000 15,600 $26.600 $ 1.80 2.60 Job $17,000 Job O $10,000 $9.100 $26,200 Direct materials Direct labor cost Actual machine-hours used Molding Fabrication Total 1.200 1.300 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 Foundational 2-3 3. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.) Total manufacturing cost

Answer 1

First step would be to compute plantwide overhead rate for overhead cost as:

Variable manufacturing overhead = 1.8 * 2500 + 2.6 * 1500 = 4500 + 3900 = $ 8400

Plantwide overhead rate = total overhead/ machine hours = (8400+26,600)/4000 = 8.75 per hour

Total number of actual hours in Job P = 3100

Actual overheads applied = 3100 * 8.75 =27,125

Manufacturing cost is the sum of direct labors, direct materials and overheads applied.

It is computed as:

Direct materials	17,000
Direct labor cost	24,200
Overheads applied	27,125
Total manufacturing cost assigned to Job P	$ 68,325