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

Calculation of overhead applied to Departments
	Molding	Fabrication
Total fixed overheads	12,250	16,350
Number of machine-hours	2,500	1,500
Fixed overhead per machine-hour	4.90	10.90
Variable overhead per machine-hour	2.30	3.10
Total Deparmental overhead per machine-hour	7.20	14
Machine-hour used (2,600+1,700) (1,500+ 1,800)	4,300	3,300
Overheads applied to Departments	$30,960	$46,200

Calculation of cost of goods sold for march
Direct Materials (22,000 + 12,500 )	$34,500
Direct labour (28,200 + 11,100 )	$39,300
Overheads applied         Molding    Fabrication	$30,960 $46,200
Total cost of goods sold	$150,960