Question

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): Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabrication 2,500 1,500 $10,250 $15, 150 $ 1.50 $ 2.30 Total 4,000 $25,400 Job P $14,000 $21,800 JobQ $8,500 $7,900 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,800 700 2,500 900 1,000 1,900 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Answer 1

Estimated machine hours of molding department = 2,500

Estimated variable manufacturing overhead per machine hour of molding department = $1.50

Estimated total variable manufacturing overhead of molding department = Estimated machine hours of molding department x Estimated variable manufacturing overhead per machine hour of molding department

= 2,500 x 1.50

= $3,750

Estimated machine hours of fabrication department = 1,500

Estimated variable manufacturing overhead per machine hour of fabrication department = $2.30

Estimated total variable manufacturing overhead of fabrication department = Estimated machine hours of fabrication department x Estimated variable manufacturing overhead per machine hour of fabrication department

= 1,500 x 2.30

= $3,450

Total estimated variable manufacturing overhead = Estimated total variable manufacturing overhead of molding department + Estimated total variable manufacturing overhead of fabrication department

= 3,750+3,450

= $7,200

Estimated total fixed manufacturing overhead = $25,400

Total estimated manufacturing overhead = Total estimated variable manufacturing overhead + Estimated total fixed manufacturing overhead

= 7,200+25,400

= $32,600

Total estimated machine hours = 4,000

Predetermined overhead rate = Total estimated manufacturing overhead/ Total estimated machine hours

= 32,600/4,000

= $8.15 per machine hour

Actual machine hours used in Job P = 2,500

Manufacturing overhead applied for Job P = Actual machine hours used in Job P x Predetermined overhead rate

= 2,500 x 8.15

= $20,375

Total manufacturing cost assigned to Job P = Direct materials + Direct labor + Manufacturing overhead applied

= 14,000+21,800+20,375

= $56,175

Kindly comment if you need further assistance. Thanks