Question

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	$	14,250		$	17,550		$	31,800
Estimated variable manufacturing overhead per machine-hour	$	3.10		$	3.90

	Job P			Job Q
Direct materials	$	30,000		$	16,500
Direct labor cost	$	34,600		$	14,300
Actual machine-hours used:
Molding		3,400			2,500
Fabrication		2,300			2,600
Total		5,700			5,100

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.

8. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

9. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.)

10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

Answer 1

Estimated variable manufacturing overhead	13600	=(2500*3.1)+(1500*3.9)
Estimated total fixed manufacturing overhead	31800
Estimated total manufacturing overhead	45400
Divide by Estimated total machine-hours used	4000
Plantwide predetermined overhead rate	11.35	per MH
	Job P	Job Q
Direct materials	30000	16500
Direct labor cost	34600	14300
Manufacturing overhead applied	64695	57885
Total manufacturing cost	129295	88685
8
Cost of goods sold for March	217980	=129295+88685
9
Predetermined overhead rates :
Molding Department	8.80	=3.10+(14250/2500)
Fabrication Department	15.60	=3.90+(17550/1500)
10
Manufacturing overhead applied:
Job P	29920	=3400*8.80
Job Q	22000	=2500*8.80