Question

(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 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabrication Total 2,500 1,500 4,800 $12,250 $16,350 $28,600 $ 2.30 $ 3.10 Job Job P $22,000 $28,200 $12,500 $11,100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2.600 1,500 4,100 1,700 1,800 3,500 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

Calculation of Manufacturing overhead applied

Job P Job Q

Actual machine-hours worked (a)	1500	1800
Predetermined overhead rate per MH (b) (Calculation given below)	$14	$14
Manufacturing overhead applied (a) × (b)	$21,000	$25,200

Calculation of predetermined overhead rate per MH

Molding Fabrication

Variable manufacturing overhead - Molding ($2.30 x 2500AMH) ;($3.10 x 1500 AMH)	$5,750	$4,650
Fixed Manufacturing over head	$12,250	$16,350
Estimated manufacturing overhead costs in Molding and Fabrication (a)	$18,000	$21,000
Estimated total machine-hours (MHs) (b)	2500	1500
Predetermined overhead rate (a) ÷ (b)	$7.20	$14.00

Please give thumbs up if you like my answer :-)