Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during MarchJob P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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 fixed manufacturing overhead	$	12,000
Estimated variable manufacturing overhead per direct labor-hour	$	1.40
Estimated total direct labor-hours to be worked		2,400
Total actual manufacturing overhead costs incurred	$	15,000

	Job P			Job Q
Direct materials	$	15,000		$	8,400
Direct labor cost	$	22,500		$	10,500
Actual direct labor-hours worked		1,500			700

3.

value: 3.00 points

Required information

Required:

1. What is the companys predetermined overhead rate? (Round your answer to 2 decimal places.)

References

4.

value: 3.00 points

Required information

2. How much manufacturing overhead was applied to Job P and Job Q?

5.

value: 3.00 points

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4. If Job P includes 30 units, what is its unit product cost?

6.

value: 3.00 points

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6. What is the amount of underapplied or overapplied overhead?

7.

value: 3.00 points

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7. Will your answer to question 6 increase or decrease unadjusted cost of goods sold?

	Increase
	Decrease

8.

value: 3.00 points

Required information

9. If Sweeten Companys labor time tickets totaled $37,300 for the month of March, then how much indirect labor cost would be included in Manufacturing Overhead Incurred?

9.

value: 3.00 points

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10. Calculate the cost of goods sold using the direct method.

10.

value: 3.00 points

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12. Calculate the cost of goods sold using the indirect method.

11.

value: 3.00 points

Required information

13. How would you revise your answer to question 11 if the company had beginning work in process inventory of $8,400?

12 3.00 points

Required information

15. Assume that Job P includes 30 units that each sell for $2,400 and that the companys selling and administrative expenses in March were $21,000. Prepare an absorption costing income statement for March.