Question

er 20 Shelly Cashman Excel 2019 IM Saved Help S You received no credit for this question in the previous attempt. View The Foundational 15 (LO2-1, LO2-2, 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 Q (all data and questions relate to the month of March): Estimated total machine-hours used Molding Fabrication Total 2,500 1,500 4,00 Estimated total fixed manufacturing overhead $10,000 $15,000 $25,000 Estimated variable manufacturing overhead per machine-hour $ 1.40 $ 2.20 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P Job O $13,000 $8,000 $21.000 $7,500 1,700 800 600 900 2,300 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

Answer 1

Solution 1:

Predetermined overhead rate = Estimated total overhead / Estimated machine hours = (2500*$1.40 + 1500*$2.20 + $25,000) / 4000 = $7.95 per machine hour

Solution 2:
Computation of overhead applied - Plantwide overhead rate
Particulars	Job P	Job Q
Actual machine hours	2300	1700
Overhead rate	$8.95	$8.95
Overhead applied to jobs	$20,585.00	$15,215.00

Solution 3 to 6:
Compuatation of manufacturing cost assigned to Job P and Q
Particulars	Job P	Job Q
Direct Material	$13,000	$8,000
Direct Labor	$21,000	$7,500
Manufacturing overhead	$20,585	$15,215
Total Manufacturing cost	$54,585	$30,715
Compuatation of manufacturing cost and cost per unit assigned to Job
Particulars	Job P	Job Q
Total Manufacturing cost	$54,585.00	$30,715.00
Nos of units	20	30
Unit product cost	$2,729	$1,024

Solution 7:
Compuatation of Total price and per unit price of job
Particulars	Job P	Job Q
Manufacturing Cost	$54,585.00	$30,715.00
Markup (80%)	$43,668.00	$24,572.00
Total price of job	$98,253.00	$55,287.00
Nos of units	20	30
Selling price per unit	$4,913	$1,843

Solution 8:

Cost of goods sold for march = $54,585 + $30,715 = $85,300