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 the March and Job Q was incomplete at the end of the 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): $ 12,500 $ 1.50 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 2,500 $ 16,000 Direct materials Direct labor cost Actual direct labor-hours worked Job Job Q $ 16,500 $ 8,500 $ 25,600 $ 12,000 1,600750 Required: How much manufacturing overhead was applied to Job P and Job Q? (Do not round intermediate calculations.) Job P Job Q Manufacturing overhead applied

Answer 1

Job P Job a Manufacturing over head applied $10,400 $4,875 Calculation: Manufacturing overhead applied = (Actual direct labor hours worked X predetermined Overhead rate) firstly calculate predetermined overhead rate Estimated fixed manufacturing over head Add: Estimated variable manufacturing overhead Estimated total manufacturing over head cost $12,500 $3,750 $16,250 * Estinaated variable manufacturing overhead = Estimated variable manufacturing overhead per direct labor hour x Estimated to tal direct labor hours to be worked) = $ 1.50 x 2,500 = $3,750 NOW, overhead rate = Estimated fra total manu Predetermined overhead rate = over head & Estimated total direct labor hours = $16,250 - 2,500 = $6.5 per DLH

Now, Manufacturing overhead applied to Job P - Direct Labor hours of Job P X Pedetesnined overhead rate - 1,600 x $6.5 - $ 10,400 Manufacturing overhead applied to Job - Direct labor hours of co. Job lo & Predetermined overhead rate . - 750X $6.5 = $4,875