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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.
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 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): Molding Fabrication Total Estimated total machine-hours used 2,500 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead $10,000 1,500 $15,000 4,000 $25,000 per machine-hour $1.40 $2.20 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 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. 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? 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? 8. What was Sweeten Company's cost of goods sold for March?
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