Question

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March-Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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): eBoo, Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per direct labor-hour Estimated total direct labor-hours to be worked Total actual manufacturing overhead costs incurred $ 12,ce $ 1.40 2,400 $ 15,000 References Direct materials Direct labor cost Actual direct labor.hours worked Job P $ 15,000 $ 22, Sea 1,500 Job Q $ 8,400 $19,500 700 3. What is the direct labor hourly wage rate? Job P Job Direct labor hourly wage rate

Answer 1

3
	Job P	Job Q
Direct labor cost	22500	10500
Divide by Average Direct labor hours worked	1500	700
Direct labor hourly wage rate	15	15
4
Predetermined overhead rate	6.40	=1.40+(12000/2400)
	Job P
Direct materials	15000
Direct labor cost	22500
Overhead applied	9600	=1500*6.40
Total manufacturing cost	47100
Divide by Units	30
Unit product cost	1570