Question
please slove for all Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing
please slove for all
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departmentsMolding 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):
Molding | Fabrication | Total | |
---|---|---|---|
Estimated total machine-hours used | 3,900 | 2,340 | 6,240 |
Estimated total fixed manufacturing overhead | $ 15,600 | $ 23,400 | $ 39,000 |
Estimated variable manufacturing overhead per machine-hour | $ 1.40 | $ 2.20 |
Job P | Job Q | |
---|---|---|
Direct materials | $ 20,280 | $ 12,480 |
Direct labor cost | $ 32,760 | $ 11,700 |
Actual machine-hours used: | ||
Molding | 2,660 | 1,250 |
Fabrication | 940 | 1,390 |
Total | 3,600 | 2,640 |
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Required:
For questions 1 to 9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10 to 15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base.
1. What were the companys predetermined overhead rates in the Molding Department and the Fabrication Department?
2. 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.)
3. 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.)
4. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.)
5. 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.)
6. What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.)
7. 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.)
8. 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? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
9. What was Sweeten Companys cost of goods sold for March? (Do not round intermediate calculations.)
10. What was the companys plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)
Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates:
Direct labor-hours required to support estimated production | 90,000 |
---|---|
Machine-hours required to support estimated production | 45,000 |
Fixed manufacturing overhead cost | $ 252,000 |
Variable manufacturing overhead cost per direct labor-hour | $ 2.40 |
Variable manufacturing overhead cost per machine-hour | $ 4.80 |
During the year, Job 550 was started and completed. The following information is available with respect to this job:
Direct materials | $ 236 |
---|---|
Direct labor cost | $ 371 |
Direct labor-hours | 15 |
Machine-hours | 5 |
Required:
1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach:
a. Compute the plantwide predetermined overhead rate.
b. Compute the total manufacturing cost of Job 550.
c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?
2. Assume that Landens controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:
a. Compute the plantwide predetermined overhead rate.
b. Compute the total manufacturing cost of Job 550.
c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?
(Round your intermediate calculations to 2 decimal places. Round your Predetermined Overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar.)
High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates:
Department | ||
---|---|---|
Molding | Painting | |
Direct labor-hours | 36,000 | 58,600 |
Machine-hours | 85,000 | 31,000 |
Fixed manufacturing overhead cost | $ 229,500 | $ 544,980 |
Variable manufacturing overhead per machine-hour | $ 2.60 | - |
Variable manufacturing overhead per direct labor-hour | - | $ 4.60 |
Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job:
Department | ||
---|---|---|
Molding | Painting | |
Direct labor-hours | 86 | 129 |
Machine-hours | 380 | 70 |
Direct materials | $ 950 | $ 1,280 |
Direct labor cost | $ 700 | $ 1,020 |
Required:
1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department.
2. Compute the total overhead cost applied to Job 205.
3-a. What would be the total manufacturing cost recorded for Job 205?
3-b. If the job contained 30 units, what would be the unit product cost?
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