Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding...
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Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding 2,500 $ 10,000 $ 1.40 Fabrication 1,500 $ 15,000 $ 2.20 Total 4,000 $ 25,000 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Direct materials Job P $13,000 Job Q $ 8,000 Direct labor cost $ 21,000 $ 7,500 Actual machine-hours used: Molding Fabrication 1,700 600 2,300 800 900 1,700 Total 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 2-7 (Static) 7. Assume that Sweeten Company uses cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. If Job P includes 20 units and Job Q includes 30 units, what selling price would the company establish for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis? (Do not round intermediate calculations Round your final answers to nearest whole dollar.) Job P Job Q Total price for the job Selling price per unit Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding 2,500 $ 10,000 $ 1.40 Fabrication 1,500 $ 15,000 $ 2.20 Total 4,000 $ 25,000 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Direct materials Job P $13,000 Job Q $ 8,000 Direct labor cost $ 21,000 $ 7,500 Actual machine-hours used: Molding Fabrication 1,700 600 2,300 800 900 1,700 Total 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 2-7 (Static) 7. Assume that Sweeten Company uses cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. If Job P includes 20 units and Job Q includes 30 units, what selling price would the company establish for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis? (Do not round intermediate calculations Round your final answers to nearest whole dollar.) Job P Job Q Total price for the job Selling price per unit
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To calculate the selling price for Jobs P and Q using costplus pricing we need to determine the tota... View the full answer
Related Book For
Introduction to Managerial Accounting
ISBN: 978-1259917066
8th edition
Authors: Peter C. Brewer, Ray H Garrison, Eric Noreen
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