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 Job $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.

Answer 1

	Molding	Fabrication	Total
Estimated total machine hours used	2500	1500	4000
(*) Estimated variable manufacturing overhead per machine hour	1.40	2.20
Estimated total variable manufacturing overhead	3500	3300	6800
Estimated total fixed manufacturing overhead	10000	15000	25000
Estimated total manufacturing overhead	13500	18300	31800

Plantwide predetermined overhead rate = Estimated total manufacturing overhead / Estimated total machine hours used = 31800 / 4000 =

7.95

per MH

Required 2 :
	Job P	Job Q
Total actual machine hours used	2300	1700
Plantwide predetermined overhead rate	7.95	7.95
Manufacturing overhead applied	18285	13515