Required information Skip to question The following information applies to the questions displayed below 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 yearJob 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 periods estimated level of production Sweeten also estimated $26,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2 10 per machine hour Because Sweeten has two manufacturing departmentsMolding 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 Fabrication Total Estimated total machine hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $ 11,000 $ 15,600 $ 26,600 Estimated variable manufacturing overhead per machine hour $ 1 80 $ 2 60 The direct materials cost, direct labor cost, and machine hours used for Jobs P and Q are as follows Job P Job Q Direct materials $ 17,000 $ 10,000 Direct labor cost $ 24,200 $ 9,100 Actual machine hours used Molding 2,100 1,200 Fabrication 1,000 1,300 Total 3,100 2,500 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 10 How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q Note Do not round intermediate calculations 11 How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q 12 If Job P includes 20 units, what is its unit product cost 13 If Job Q includes 30 units, what is its unit product cost 14 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 15 What is Sweeten Companys cost of goods sold for the year

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 04, 2024

Required information Skip to question [The following information applies to the questions displayed below.] Sweeten Company had no jobs in progress at the beginning of

Required information

Skip to question

[The following information applies to the questions displayed below.]

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 yearJob 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 periods estimated level of production. Sweeten also estimated $26,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.10 per machine-hour.

Because Sweeten has two manufacturing departmentsMolding 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	Fabrication	Total
Estimated total machine-hours used	2,500	1,500	4,000
Estimated total fixed manufacturing overhead	$ 11,000	$ 15,600	$ 26,600
Estimated variable manufacturing overhead per machine-hour	$ 1.80	$ 2.60

The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:

	Job P	Job Q
Direct materials	$ 17,000	$ 10,000
Direct labor cost	$ 24,200	$ 9,100
Actual machine-hours used:
Molding	2,100	1,200
Fabrication	1,000	1,300
Total	3,100	2,500

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.

10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?

Note: Do not round intermediate calculations.

11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?

12. If Job P includes 20 units, what is its unit product cost?

13. If Job Q includes 30 units, what is its unit product cost?

14. 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?

15. What is Sweeten Companys cost of goods sold for the year?