[The following information applies to the questions displayed below.]

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 $ 12,500 Estimated variable manufacturing overhead per direct labor-hour $ 1.50 Estimated total direct labor-hours to be worked 2,500 Total actual manufacturing overhead costs incurred $ 16,500

Job P Job Q Direct materials $ 16,500 $ 8,500 Direct labor cost $ 25,600 $ 12,000 Actual direct labor-hours worked 1,600 750

1. Required information Required:

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

.

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

3. Required information 3. What is the direct labor hourly wage rate?

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

.

5. Required information 5 What is the total amount of manufacturing cost assigned to Job Q as of the end of March (including applied overhead)?

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

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

Decrease Increase

8. Required information 8. If Sweeten Company requisitioned $27,900 from raw materials inventory during March, then how much indirect materials cost would be included in Manufacturing Overhead Incurred?

9. Required information 9. If Sweeten Companys labor time tickets totaled $42,000 for the month of March, then how much indirect labor cost would be included in Manufacturing Overhead Incurred?

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

11. Required information 11. Calculate the cost of goods manufactured using the indirect method.

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

13. Required information 13. How would you revise your answer to question 11 if the company had beginning work in process inventory of $8,500?

14. Required information 14. How would you revise your answer to question 12 if the company had beginning finished goods inventory of $12,500?

15. Required information 15. Assume that Job P includes 30 units that each sell for $2,600 and that the companys selling and administrative expenses in March were $21,500. Prepare an absorption costing income statement for March.