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 $10,000 $15,000 $25,000 $ 1.40 $ 2.20 Job P $13,000 $21,000 Job 0 $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 1-9, 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. 3. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Unit product cost $ 1,027

Answer 1

Molding 2500 10000 1.4 Job Q 8000 7500 Fabrication Total 1500 4000 15000 25000 2.2 Estimated Total Machine Hours Used Estimated Total Fixed Manufacturing Overhead Estiamted Varaible Manifacturing OH Per Machine Hours Job P Direct Material 13000 Direct Labor Cost 21000 Actula Machine- Hours Used Molding 1700 Fabrication 600 Total 2300 800 900 1700 Plant Wide Predetermined Overhead Rate : Machine Hours as an Allocation Base Molding 10000 2500 1.4 Fabrication 15000 + 1500 2.2 + 13500 18300 31800 7.95 4000 2300 18285 13515 1700 Overhead Rate 31800 Overhead Applied to Job P, Job Q Job P 7.95 Job Q 7.95 Total Manufacturing cost for Job Q Direct Material 8000 Direct Labor Cost 7500 Manufacturing Overheads 13515 Total Manufacturing cost for Job Q 29015 If Job Q Includes 30 Units 4) Answer Unit Product cost 29015 / 30 967 Answer