Question

Required information [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): Molding Fabrication total Estimated total machine-hours used 2,500 Estimated total fixed manufacturing overhead $16,350 $28,600 Estimated variable manufacturing overhead per machine-hour 1,500 4,000 $12,250 $ 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:

Answer 1

Calculation of Total Manufacturing Cost assigned to Job P
Particulars	Amount in $
Direct Materials	22,000
Direct Labor Costs	28,200
Total Manufacturing Overhead Applied ( Refer WN-1)	39,945
Total Manufacturing Cost assigned to Job P	90,145
WN-1
Calculation of Manufacturing Overhead Applied to Job P
Particulars	Amount in $
Variable Manufacturing Cost - Moulding (2600 Hrs * 2.3)	5,980	(Actual Machine Hours Used * Estimated Variable Manufacturing Overhead per hour)
Variable Manufacturing Cost - Fabrication (1500 Hrs * 3.1)	4,650
Fixed Manufacturing Overhead ( 4100 * $ 7.15 )	29,315	(Total Machine Hours Used * PlantWide Predeteremined Overhead Rate (Refer WN-2)
Total Manufacturing Overhead assigned to Job P	39,945
WN-2
Calculation of PlantWide Predeteremined Overhead Rate
Predeteremined Overhead Rate = Estimated Fixed Manufacturing Overhead/Estimated Machine Hours
Predeteremined Overhead Rate = $ 28600/4000 Hrs
Predeteremined Overhead Rate = $ 7.15 per hours