Question

of 15 The Foundational 15 (LO2-1, LO2-2, LO2-3, LO2-4) [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): bok 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 $10,000 $15,000 $25,000 $ 1.40 $ 2.20 ances Job Job P $13,000 $21,000 $8,000 $7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 2,300 BOD 900 1,700 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.

Answer 1

Answer 8)

	Job P	Job Q
Direct Materials	$        13,000	$         8,000
Direct Labor cost	$        21,000	$         7,500
Variable Manufacturing Overhead cost:
Molding Department:
Job P (1,700 machine hours X $ 1.40 per machine hour)	$          2,380
Job Q (800 machine hours X $ 1.40 per machine hour)		$         1,120
Fabrication Department:
Job P (600 machine hours X $ 2.20 per machine hour)	$         1,320
Job Q (900 machine hours X $ 2.20 per machine hour)		$         1,980
Fixed Manufacturing Overhead cost:
Molding Department:
Job P (1,700 machine hours X $ 4.00 per machine hour)	$          6,800
Job Q (800 machine hours X $ 4.00 per machine hour)		$         3,200
Fabrication Department:
Job P (600 machine hours X $ 10 per machine hour)	$          6,000
Job Q (900 machine hours X $ 10 per machine hour)		$         9,000
Total Manufacturing Cost	$        50,500	$       30,800
Add: Profit @ 80% of Total manufacturing cost
Job P ($ 50,500 X 80%)	$        40,400
Job Q ($ 30,800 X 80%)		$       24,640
Total Price for the Job	$        90,900	$       55,440
Number of units produced	20	30
Selling price per unit (Total Price/ Number of units produced)	$          4,545	$         1,848

Working Note:

Calculation of Predetermined overhead rate for Molding Department based on machine hours

Predetermined overhead rate = Estimated fixed manufacturing overhead for Molding Department/ Estimated total machine hours used in Molding department

                                                                                  = $ 10,000/2,500 machine hours

                                                                                  =$ 4.00 per machine hour

Calculation of Predetermined overhead rate for Fabrication Department based on machine hours

Predetermined overhead rate = Estimated fixed manufacturing overhead for Fabrication Department/ Estimated total machine hours used in Fabrication department

                                                                                  = $ 15,000/1,500 machine hours

                                                                                  =$ 10.00 per machine hour