Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed
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 year-Job P and Job Q. The company uses a plantwide predetermined overhead rate based on machine-hours. At the beginning of the yeac, it estimated that 4,000 machine-hours would be reculred for the period's estimated level of production. Sweeten also estimated $32,600 of fored manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.60 per machine hour. Bocause Sweeten has two manufacturing departments-Moiding and Fabrication-it is considering replacing its plantwide overhead rate with departmental fates that would also be based on machine-hours. The cempany gsthered the following additional information to enable calculating departmental overhosd rates: The direct materias cost, direct labor cost, and machine-hours used for Jebs P and Q are as follows: Sweeten Company had no overappled or underapplied manufacturing overhead costs during the yoar. Required: For questions 1-8, assume that Sweeten Company uses a plantwide predetermined ovorhead rate with machine-hours as the allocation base. For questions, 915, ass ame that the compeny uses predetermined departmental overthesd rates with machine-hours as the allocation base in both departments. 7. Assume that Sweeten Compary uses cost-plus pricing (and a markup percentage of 80k of total manufacturing cost) to establish seling prices for all of its jobs. If Job P.ineludes 20 units and Job Q includes 30 units, what selling price would the compary establish for Jobs P and Q ? What are the solling peices for both jobs when stated ona per unit bass? (Do not round Intermediate calculations. Pourd vour final antwers to nearest whole dollar

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions