Question

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

Answer 1

Note:For the question I am using Predtermined overhead rate per machine hours for allocation of both departments as a whole
Computation of predetermined overhead rate
Fixed Overhead Cost	$28,600
Variable overhead cost[(2500*$2.30)+(1500*$3.10)]	$10,400
Total overhead cost(a)	$39,000
Total Machine hours(b)	4,000 hours
predetermined overhead rate(a/b)	$9.75
Computation of Total Job cost
	Job P	Job Q
Direct Materials	$22,000	$12,500
Direct labor	$28,200	$11,100
Overhead applied	$39,975	$34,125
Total Job cost	$90,175	$57,725
	Job P	Job Q
Total Job cost	$90,175	$57,725
Add:Markup at 80% on cost	$72,140	$46,180
Selling price	$162,315	$103,905
No. of units	20	30
Selling price per unit	$                             8,115.75	$                                 3,463.50
	OR
Selling price per unit	$                                  8,116	$                                      3,464