Question
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
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 $32,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.60 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 | $ 14,750 | $ 17,850 | $ 32,600 |
Estimated variable manufacturing overhead per machine-hour | $ 3.30 | $ 4.10 |
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 | $ 32,000 | $ 17,500 |
Direct labor cost | $ 36,200 | $ 15,100 |
Actual machine-hours used: | ||
Molding | 3,600 | 2,700 |
Fabrication | 2,500 | 2,800 |
Total | 6,100 | 5,500 |
Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.
Required:
For questions 18, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions, 915, assume that the company uses predetermined departmental overhead rates with machine-hours as the allocation base in both departments.
Foundational 3-3 (Algo)
3. What is the total manufacturing cost assigned to Job P?
Note: Do not round intermediate calculations. Round your final answer to nearest whole dollar.
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