Question

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 4,000 $10,000 $15,000 $25,000 $ 1.40 $ 2.20 Job P $13,000 $21,000 JobQ $8,000 $7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 2,300 800 900 1,700 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.


1. What was the company’s plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)

2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

3. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.)

4. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

5. What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.)

6. 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.)



8. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

Answer 1

Based on the information available in the question, we can answer as follows:-

Requirement 1:-

Step 1 :- Fixed overhead rate

=$25,000/4,000 hours

=$6.25 per hour

Step 2:- Variable overhead rate

=(2,500 * $1.4) + (1,500 * 2.20)

=$6,800/4,000 hours

=$1.7 per hour

Step 3:- Predetermined Overhead rate

=$6.25 + $1.7

Predetermined Overhead rate = $7.95 per hour

Requirement 2:-

Manufacturing overhead applied to P:-

2,300 hours * $7.95 per hour = $18,285

Manufacturing overhead applied to Q:-

1,700 hours * $7.95 per hour = $13,515

Requirement 3:-

Manufacturing cost assigned to P:-

Particulars	Amount
Direct Materials	13,000
Direct Labor	21,000
Overheads	18,285
Total	52,285

Requirement 4:-

If P included 20 units, unit product cost is :- $52,285/20 units

Unit Product Cost = $2,614.25

Unit Product cost = $2,614(Rounded)

Kindly note that i have answered the first 4 questions per the HOMEWORKLIB RULESs. Request you to post the remaining questions separately so that we can answer them as well. All the best and please let me know if you have any questions via comments :)