Question

Réquirèd information [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): Molding Fabrication Total 4,000 $25,000 Estimated total machine-hours used 2,500 1,500 $15,000 $ 2.20 Estimated total fixed manufacturing overhead $10,000 Estimated variable manufacturing overhead per machine-hour 1.40 Job P Job Q Direct materials $13,000 $21,000 $8,000 Direct labor cost $7,500 Actual machine-hours used: Molding Fabrication 1,700 800 600 900 2,300 1,700 Total 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.

9. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.)

10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

12. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations.)

Answer 1

9) Predetermine overhead rate of Molding Department = (10000/2500+1.40) = 5.40 per MH

Predetermine overhead rate of Fabrication department = (15000/1500+2.20) = 12.20 per MH

10) Manufacturing overhead applied from the molding department to Job P = 1700*5.40 = 9180

Manufacturing overhead applied from Molding department to Job Q = 800*5.40 = 4320

11) Manufacturing overhead applied from the Fabrication to Job P = 600*12.20 = 7320

Manufacturing overhead applied from the Fabrication to Job Q = 900*12.20 = 10980

12) Unit product cost

	Job P
Direct material	13000
Direct labor	21000
Molding overhead	9180
Fabrication overhead	7320
Total product cost	50500
Unit product cost (50500/20)	2525