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I have attached the problem. I don't understand how to do problem 7. I have done 1 - 6 are complete and correct and I
I have attached the problem. I don't understand how to do problem 7. I have done 1 - 6 are complete and correct and I figure are part of the solution to #7. If you can give me the steps to solving it would be appreciated. I'm not looking for the answer, just the steps so I can understand how the problem is done. I have attached the whole problem on a word document.
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 MarchJob 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): Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $16,000 $23,400 Job Q $9,500 $8,700 2,000 900 2,900 1,100 1,200 2,300 Molding Fabrication Total 2,500 1,500 4,000 $10,750 $ 15,450 $26,200 $ 1.70 $ 2.50 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 machinehours 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. What was the company's plantwide predetermined overhead rate? Predetermined Overhead Rate = Estimated Fixed Overhead/Estimated Direct Labor Hours + Variable Overhead Rate Per Hour Estimated total overhead = Estimated total fixed manufacturing overhead (26,200) + variable overhead molding (machine hours:2500*var overhead per machine hour molding:1.70) + variable overhead fabrication (machine hours:1500*var overhead per machine hour fabrication:2.50) = 26200 + 4250 + 3750 = 34,200 1. Plantwide predetermined rate = estimated total overhead (34,200)\\estimated total machine hours (4000) = 8.55 2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.) Manufacturing overhead = direct materials + direct labor + (predetermine overhead rate*machine hours) Job P = overhead rate * total machine hours = 8.55 (previous solution) * 2900 = 24,795 Job Q= overhead rate * total machine hours = 8.55 (previous solution) * 2300 = 19665 3. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.) Total manufacturing cost = direct materials + direct labor + manufacturing overhead (previous solution) = 16,000 + 23400 + 24795 = 64195 4. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Unit product cost = total manufacturing cost \\ total units = 64195 \\ 20 = 3,209.75 5. What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.) Total manufacturing cost = direct materials + direct labor + manufacturing overhead (previous solution) = 9,500 + 8,700 + 19,665 = 37,865 6. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Unit product cost = total manufacturing cost \\ total units = 37865 \\ 300 = 1262.17 7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)Step by Step Solution
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