Question

# Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories....

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 1,500 4,000 Estimated total fixed manufacturing overhead \$ 14,500 \$ 17,700 \$ 32,200 Estimated variable manufacturing overhead per machine-hour \$ 3.20 \$ 4.00
 Job P Job Q Direct materials \$ 31,000 \$ 17,000 Direct labor cost \$ 35,400 \$ 14,700 Actual machine-hours used: Molding 3,500 2,600 Fabrication 2,400 2,700 Total 5,900 5,300

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. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.

Find predetermine overheard rate

 Calculation of company’s plantwide predetermined overhead rate Plantwide predetermined overhead rate = [Estimated total fixed manufacturing overhead + Estimated total variable manufacturing overhead] / Estimated total machine-hours used Estimated total fixed manufacturing overhead = \$32200 Estimated total variable manufacturing overhead = [2500 machine hours x \$3.20] + [1500 machine hours x \$4] = \$14,000 Estimated total machine-hours used = 4000 hours Plantwide predetermined overhead rate = [\$32200 + \$14000]/4000 machine hours = \$11.55 per machine hour

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