Sweeten Company had no inventories at the beginning and end of March. The company has two manufacturing departments---Molding and Fabrication. It has two products --Product P and Product Q. The following additional information is available for the company as a whole and for Products P and Q (all data and questions relate to the month of March):

		Molding	Fabrication	Total
Estimated total machine-hours used		2500	1500	4000
Estimated total fixed manufacturing overhead		$10,000	$15,000	$25,000
Estimated variable manufacturing overhead		$3,500	$3,300	$6,800
Predetermined variable manufacturing
overhead per machine-hour		$1.40	$2.20	$1.7
			Product P	Product Q
Direct materials			$13,000	$8,000
Direct labor costs			$21,000	$7,500
Actual machine-hours used:
Molding			1,700	800
Fabrication			600	900
Total			2,300	1,700

Sweeten Company had no underapplied or overapplied manufacturing overhead cost during the month.

Part 1: Perform a basic cost analysis using different assumptions about the costing method used. Assume that for both methods, the company adopts machine hours as the allocation base.

Method A: The company uses a single, plantwide predetermined overhead rate.

Method B: The company uses [two] departmental overhead rates.

Basic Cost Analysis:

1) What was the company's plantwide predetermined overhead rate? What were the departmental overhead rates for the Molding Department and the Fabrication Department?

2) How much manufacturing overhead was applied to Product P and to Product Q? Under method A? Under method B?

3) What was the total manufacturing cost assigned to Product P and Product Q? Under method A? Under method B?

4) What was its unit product cost

a) If Product P included 20 units? Under cost method A? Under cost method B?

b) If Product Q included 30 units? Under cost method A? Under cost method B?

5) What was Sweeten Company's cost of goods sold for March? Under method A? Under method B?