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	$	11,000		$	15,600		$	26,600
Estimated variable manufacturing overhead per machine-hour	$	1.80		$	2.60

	Job P			Job Q
Direct materials	$	17,000		$	10,000
Direct labor cost	$	24,200		$	9,100
Actual machine-hours used:
Molding		2,100			1,200
Fabrication		1,000			1,300
Total		3,100			2,500

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.

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

10. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations.)

11. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Answer 1

	Molding
	predetermined overhead rate
	Estimated total fixed MOH			(11000/2500)=		4.4
	Estimated VMOH per machine hr					1.8
	predetermined overhead rate					6.2	per machine hour
	Fabrication
	predetermined overhead rate
	Estimated total fixed MOH			(15600/1500)=		10.4
	Estimated VMOH per machine hr					2.6
	predetermined overhead rate					13	per machine hour
					Job P	Job Q
	Direct materials				17,000	10,000
	Direct labor cost				24,200	9,100
	overhead applied
	Molding				13020	7440
	Fabrication				13000	32500
	total cost				67,220	59,040
9)	manufacturing overhead applied from fabrication department to
	Job P		13,000
	Job Q		32,500
10)	unit product cost of Job P
	67,220/20
	3361
11)	unit product cost of Job Q
	59,040/30
	1968