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12. Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two
12.
Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year-Job P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be required for the period's estimated level of production. Sweeten also estimated $25,400 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $1.80 per machine-hour. Because Sweeten has two manufacturing departments-Molding and FabricationIt is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: Molding Pabrication Total Estimated total machine-hours used 2,500 1,500 Estimated total fixed manufacturing overhead $ 10,250 $ 15,150 Estimated variable manufacturing overhead per machine-hour $ 2.30 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: 4,000 $ 25,400 $ 1.50 Job $ 14,000 $ 21,800 Job $ 8,500 $ 7.900 Direct materiale Direct labor cost Actual machine-hours uned! Molding Fabrication Total 1.800 700 2,500 900 1,000 1,900 Sweeten Company had no overopplied or underapplied manufacturing overhead costs during the year. 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 predetermined departmental overhead rates with machine-hours as the allocation base in both departments. Foundational 2-12 (Algo) Estimated variable manufacturing overhead per machine-hour $ 1.50 $ 2.30 The direct materials cost direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job P $ 14,000 $ 21,800 Job O $ 8,500 $ 7,900 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,000 700 2,500 900 1,000 1,900 Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. 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 predetermined departmental overhead rates with machine-hours as the allocation base in both departments, Foundational 2-12 (Algo) 12. If Job Pincludes 20 units, what is its unit product cost? (Do not round Intermediate calculations.) Answer is complete but not entirely correct. Unit product cost 2,809 $ Step by Step Solution
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