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Because Sweeten has two manufacturing departments-Molding and Fabrication-It is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours.
Because Sweeten has two manufacturing departments-Molding and Fabrication-It 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 Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $ 13,250 $ 16,950 $ 30,200 Estimated variable manufacturing over head per nachine-hour $ 3.50 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: $ 2.70 Job P $ 26,000 $ 31,400 Job 0 $ 14,500 $ 12,700 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 3,000 1,900 4,900 2,100 2,200 4,300 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 2-2 (Algo) 2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round Intermediate calculations.) Job P Job Manufacturing overhead applied
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