Question

Required Ihformation [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 4,000 $13,000 $16,800 $29,800 2,500 1,500 $2.603.40 Job Q $25,000 $14,000 $30,600 $12,300 Job P Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,900 1.800 4,700 2,000 2.100 4,100 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 13. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Answer 1

13)

Direct Materials		$14,000
Direct Labor		$12,300
Manufacturing overhead applied:
Molding department (2000 ×$7.8)	$15,600
Fabrication department (2100 × $14.6)	$30,660	$46,260
Total manufacturing cost		$72,560
Number of units in the job		30 units
Unit product cost ($72,560 /30 units)		$2,419

Note:-

Molding department:
Estimated total fixed manufacturing overhead	$13,000
Estimated Variable manufacturing overhead (2500 ×$2.6 =$6,500)	$6,500
Estimated total manufacturing overhead cost	$19,500
The predetermined overhead rate is computed as follow:
Estimated Total manufacturing overhead	$19,500
÷ Estimated total machine hours	2500
Predetermined overhead rate ($19,500/2500)	$7.8

Fabrication department:
Estimated total manufacturing overhead	$16,800
Estimated Variable manufacturing overhead(1500 × $3.4)	$5,100
Estimated Total manufacturing overhead	$21,900
The predetermined overhead rate is computed as follow:
Estimated total manufacturing overhead	$21,900
÷ Estimated total machine hours	1500
Predetermined overhead rate ($21,900/ 1500)	$14.6