Question
Required information [The following information applies to the questions displayed below.] Sweeten Company had no jobs in progress at the beginning of March and no
[The following information applies to the questions displayed below.]
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):
MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$14,000$17,400$31,400Estimated variable manufacturing overhead per machine-hour$3.00$3.80
Job PJob QDirect materials$29,000$16,000Direct labor cost$33,800$13,900Actual machine-hours used:Molding3,3002,400Fabrication2,2002,500Total5,5004,900
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 machine-hours 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.
14. 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 answer to nearest whole dollar.)
Job P, Job Q
Total price for the job:
Selling Price per Unit:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started