Question

The Foundational 15 (L02-1, CO2-2, LO2-3, LO2-4) 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. 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): Etiated total machine-hours used Estated total fixed anotacturing 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 P $12.000 $24,200 Job O $10,000 100 Direct materiale 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 2-13 13. If Job included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Unit product cost < Prev 11 of 11

Answer 1

Departmental predetermined overhead rate = Estimated manufacturing cost / Estimated machine hours

Molding department = $11,000+4,500 (2,500*$1.8) / 2,500 = $6.2

Fabrication department = $15,600+3,900 (1,500*$2.6) / 1,500 = $13

	Job Q
Direct material	$10,000
Direct labor	9,100
Applied overhead:
Molding (1,200*$6.2)	7,440
Fabrication (1,300*$13)	16,900
Total costs	$43,440
Total units	30
Unit product cost ($43,440/30)	$1,448