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.

11. 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.)

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

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

Predetermined overhead rates :
Molding Department	8.80	=3.1+(14250/2500)
Fabrication Department	15.60	=3.9+(17550/1500)
11
Manufacturing overhead applied:
Job P	35880	=2300*15.60
Job Q	40560	=2600*15.60
12
	Job P
Direct materials	30000
Direct labor cost	34600
Manufacturing overhead applied	65800	=(3400*8.8)+(2300*15.6)
Total manufacturing cost Job P	130400
Divide by units	20
Unit product cost Job P	6520
13
	Job Q
Direct materials	16500
Direct labor cost	14300
Manufacturing overhead applied	62560	=(2500*8.8)+(2600*15.6)
Total manufacturing cost Job Q	93360
Divide by units	30
Unit product cost Job Q	3112