Question
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departmentsMolding and Fabrication. It
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departmentsMolding and Fabrication. It started, completed, and sold only two jobs during MarchJob 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 | 3,900 | 2,340 | 6,240 |
Estimated total fixed manufacturing overhead | $ 15,600 | $ 23,400 | $ 39,000 |
Estimated variable manufacturing overhead per machine-hour | $ 1.40 | $ 2.20 |
Job P | Job Q | |
---|---|---|
Direct materials | $ 20,280 | $ 12,480 |
Direct labor cost | $ 32,760 | $ 11,700 |
Actual machine-hours used: | ||
Molding | 2,660 | 1,250 |
Fabrication | 940 | 1,390 |
Total | 3,600 | 2,640 |
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Required:
For questions 1 to 9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10 to 15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base.
10. What was the companys plantwide predetermined overhead rate?
Predetermined overhead rate= $ (answer) per overhead
11. How much manufacturing overhead was applied to Job P and how much was applied to Job Q?
Job p Job Q
Manufacturing overhead applied
12. If Job P included 20 units, what was its unit product cost?
Unit product cost
13. If Job Q included 30 units, what was its unit product cost?
Unit product Cost
15. What was Sweeten Companys cost of goods sold for March?
Cost of good sold $
two manufacturing departments-Molding and Fabrication. It started, completed, and sold only two jobs during MarchJob 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): Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1 to 9, assume that Sweeten Company uses departmental predetermined overhead rates with machinehours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10 to 15 , assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. What were the company's predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your iswers to 2 decimal places.) 14. 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? (Do not round intermediate calculations. Round your final answers 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