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	$	13,500		$	17,100		$	30,600
Estimated variable manufacturing overhead per machine-hour	$	2.80		$	3.60

	Job P			Job Q
Direct materials	$	27,000		$	15,000
Direct labor cost	$	32,200		$	13,100
Actual machine-hours used:
Molding		3,100			2,200
Fabrication		2,000			2,300
Total		5,100			4,500

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.

13. 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

Deptt Oh rate:
Molding:
Variable oh rate		2.8
Fixed Oh rate (13500/2500)	5.4
OH rate per MH		8.2
Fabricating:
Variable oh rate		3.6
Fixed Oh rate (17100/1500)	11.4
OH rate per MH		15
OH cost allocated
				Job Q
OH cost of Molding (2200 Mh @8.2)	18040
Oh cost of Fabricating (2300 Mh @ 15)	34500
Total Oh cost allocated		52540
Unit cost of Job Q
Direct material		15000
Direct labour		13100
Overheads cost allocated	52540
Total Cost of job Q		80640
Divide: Units produced	30
Unit cost of Job Q		2688