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. 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 ,000 $11,000 15,600 $26,600 $ 1.80 2.60 Job Job P $17,000 $ 24,200 $10.000 $9.100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,100 1.000 3,100 1,200 1,300 2,500 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 Foundational 2-11 11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.) Job P Job Q Manufacturing overhead applied

Answer 1

Departmental Predetermined Overhead Rate
Molding Department
Fixed Overhead Predetermined overhead rate
=$11000/2500 hours
=$4.4 per hour
Total Predetermined Overhead Rate = $4.4+1.80
=$6.2 Per MH
Fabrication Department
Fixed overhead rate
=$15600/1500
=$10.4
Total Overhead predetermined overhead rate   =$10.40+2.60
=$13 per MH
Manufacturing Overhead Applied to Job P & Job Q
Job P
Molding Department
(2100 hours*6.2 per MH			$         13,020
Fabrication Department			$         13,000
(1000*13 per Mh)
Total			$         26,020
Job Q
Molding Department			7440
(1200 hours*6.2 per MH
Fabrication Department			16900
(1300*13 per Mh)
Total			24340