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 $10,000 $15,000 $ 25,000 $ 1.40 $ 2.20 Job P $13,000 $21,000 Job $8,000 $ 7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 2,300 800 900 1,700 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. Foundational 2-3 3. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.) Total manufacturing cos! $ 37.425

Answer 1

(3) Thus the total manufacturing cost assigned to job P is $52,285

(7)

Total Sales price of Jobs	$94,113	$52,227
Selling price per unit (rounded)	$4706	$1741

(12)Thus the Unit product cost of  Job P is $2525

working notes

(3)

Estimated total fixed manufacturing overhead $25,000

Estimated total variable manufacturing overhead $6,800

(2500 $1600028325921_blob.png$ 1.40 + 1500 $1600028326028_blob.png$ 2.20 )

Estimated total manufacturing overhead cost    $31,800

Estimated total machine hours used 4,000   

Predetermined overhead rate =
Estimated total manufacturing overhead Estimated total machine hours

=   

31. 800 4. 000

=    $ 7.95 per machine hour

Total manufacturing cost assigned to Job P:
Direct materials	$13,000
Direct labour	21,000
Manufacturing overhead applied ($7.95 × 2,300 )	18,285
Total manufacturing cost	$52,285

Thus the total manufacturing cost assigned to job P is $52,285

(7)

Total manufacturing cost assigned to Job Q:
Direct Materials	$8,000
Direct labour	7,500
Manufacturing overhead applied ($7.95 × 1,700 )	13,515
Total manufacturing cost	$29,015

Thus the total manufacturing cost assigned to job Q is $29,015

Calculation of selling price per unit for both jobs
	Job P	Job Q
Total manufacturing cost	$52,285	$29015
Add: Mark up @80% of cost	$41,828	$23,212
Total Sales price of Jobs	$94,113	$52,227
Number of units	20	30
Selling price per unit	$4,705.65	$1,740.9
Selling price per unit   (rounded)	$4706	$1741

(12)

Calculation of overhead applied to Job P
	Molding	Fabrication
Total fixed overheads	10,000	15,000
Number of machine-hours	2,500	1,500
Fixed overhead per machine-hour	4	10
Variable overhead per machine-hour	1.40	2.20
Total Deparmental overhead per machine-hour	5.40	12.20
Machine-hour used in Job P	1700	600
Overheads applied to Job P	$9,180	$7,320

Calculation of unit product cost to Job P
Direct Materials	$13,000
Direct labour	$21,000
Overheads applied Molding Fabrication	$9180 $7320
Total manufacturing cost	$50,500
No. of units	20
Unit product cost to Job P	$2525