Question

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	$	10,000		$	15,000		$	25,000
Estimated variable manufacturing overhead per machine-hour	$	1.40		$	2.20

	Job P			Job Q
Direct materials	$	13,000		$	8,000
Direct labor cost	$	21,000		$	7,500
Actual machine-hours used:
Molding		1,700			800
Fabrication		600			900
Total		2,300			1,700

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.

3. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.)

Answer 1

Estimated variable manufacturing overhead	6800	=(2500*1.4)+(1500*2.2)
Estimated total fixed manufacturing overhead	25000
Estimated total manufacturing overhead	31800
Divide by Estimated total machine-hours used	4000
Plantwide predetermined overhead rate	7.95	per MH
3
	Job P
Direct materials	13000
Direct labor cost	21000
Manufacturing overhead applied	18285	=2300*7.95
Total manufacturing cost Job P	52285