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 2,500 1,500 $13,750 $17,250 $ 2.90 $ 3.70 Total 4,000 $31,000 Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Job P $28,000 $33,000 Job O 15,500 $13,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 3,200 2,100 5,300 2,300 2,400 4,700 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1-9, assume that Sweeten Company uses departmental predetermined overhead rates with machine hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10-15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. 7. 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.) Unit product cost

Answer 1

Predetermined overhead rates :
Molding Department	8.40	=2.90+(13750/2500)
Fabrication Department	15.20	=3.70+(17250/1500)
Manufacturing overhead applied:
Job P	58800	=(3200*8.40)+(2100*15.20)
Job Q	55800	=(2300*8.40)+(2400*15.20)
	Job P	Job Q
Direct materials	28000	15500
Direct labor cost	33000	13500
Manufacturing overhead applied	58800	55800
Total manufacturing cost	119800	84800
7
Total manufacturing cost Job Q	84800
Divide by units	30
Unit product cost	2827
8
	Job P	Job Q
Total manufacturing cost	119800	84800
Add: Markup @ 80%	95840	67840
Total price for the job	215640	152640
Divide by units	20	30
Selling price per unit	10782	5088