Question

Required Information [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): Molding Fabrication Total Estimated total machine-hours used 2,5ee 1,500 4, see Estimated total fixed manufacturing overhead $12,250 $16,350 $28,600 Estimated variable manufacturing overhead per machine-hour $ 2.3e $ 3.10 Job P $22,000 $28,280 Job $12,500 $11,100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,6ee 1. See 4,189 1,700 1,80e 3. See 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 14. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced Job Q? (Do not round Intermediate calculations. Round your final answer to nearest whole dollar.) Job P Job Q Total price for the job Selling price per unit

Answer 1

Molding overhead rate = (12250/2500+2.3) = 7.2 per MH

Fabrication Overhead rate = (16350/1500+3.1) = 14 per MH

	Job P	Job Q
Direct material	22000	12500
Direct labor	28200	11100
Molding overhead	2600*7.2 = 18720	12240
Fabrication overhead	1500*14 = 21000	25200
Total Cost	89920	61040
Total price for the Job	89920*1.8 = 161856	61040*1.8 = 109872
Selling price per unit	161856/20 = 8093	109872/30 = 3662