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 4,000 $12,250 $16,350 $28,600 $ 2.30 $ 3.10 Job P $22,000 $28,200 Job $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

Answer:
14)
Pre-determined Overhead rate - Molding Department         =   $ 2.30 + ( $ 12,250 / 2,500 )	$ 7.20 per DLH
Pre-determined Overhead rate - Fabrication Department         =   $ 3.10 + ( $ 16,350 / 1,500 )	$ 14 per DLH
Particulars	Job P	Job Q
Direct Materials	$ 22,000	$ 12,500
Direct Labor costs	$ 28,200	$ 11,100
Manufacturing Overhead for:
Molding Department	$ 18,720 ( 2,600 x $ 7.20 )	$ 23,800 ( 1,700 x $ 14)
Fabrication Department	$ 10,800 ( 1,500 x $ 7.20 )	$ 25,200 ( 1,800 x $ 14)
Total Manufacturing cost	$ 79,720	$ 49,000
Add: Mark Up - 80%	$ 63,776	$ 39,200
Total price for the job	$ 143,496	$ 88,200
Divided by Number of Units Produced	20 units	30 Units
Selling price per unit	$ 7,175	$ 2,940