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The Foundational 15 (Static) [LO2-1, LO2-2, LO2-3, LO2-4]

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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 $25,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $1.70 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	$ 10,000	$ 15,000	$ 25,000
Estimated variable manufacturing overhead per machine-hour	$ 1.40	$ 2.20

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	$ 13,000	$ 8,000
Direct labor cost	$ 21,000	$ 7,500
Actual machine-hours used:
Molding	1,700	800
Fabrication	600	900
Total	2,300	1,700

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 2-1 (Static)

1. What is the companys plantwide predetermined overhead rate?

2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

3. What is the total manufacturing cost assigned to Job P? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

4. If Job P includes 20 units, what is its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

5. What is the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.)

6. If Job Q includes 30 units, what is its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

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.)

8. What is Sweeten Companys cost of goods sold for the year? (Do not round intermediate calculations.)