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Sweeten Company had no jobs in progress at the beginning of March and no beginning inventor manufacturing departments-Molding and Fabrication. It started, completed, and
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventor manufacturing departments-Molding and Fabrication. It started, completed, and sold only two jobs during March-Job 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): Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Direct materials Direct labor cost Actual machine-hours used: 1 Molding Fabrication Total Molding Fabrication Total 2,500 1,500 4,000 $10,000 $15,000 $25,000. $1.40 $2.20 Job P Job Q $13,000 $8,000 $21,000 $7,500 1,700. 800 600 900 2,300 1,700 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. 1. What was the company's plantwide predetermined overhead rate? 2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? 3. What was the total manufacturing cost assigned to Job P? 4. If Job P included 20 Units, what was its unit product cost? 5. What was the total manufacturing cost assigned to Job Q? 6. If Job Q included 30 units, what was its unit product cost? Page 149 7. 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?
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