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.

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

6. 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.)

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

8. 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 overhead = (2500*1.8+1500*2.6+11000+15600) = 35000

Predetermine overhead rate = 35000/4000 = $8.75 per hour

Job Applied to job Q = 2500*8.75 = $21875

5) Total manufacturing cost = 10000+9100+21875 = 40975

6) unit product cost = 40975/30 = 1366

7) Molding department rate = (11000/2500)+1.8 = 6.2 per hour

Fabrication department rate = (15600/1500)+2.6 = 13 per hour

9) Job P Applied manufacturing overhead = (2100*6.2+1000*13) = $26020

Job Q applied manufacturing overhead = (1200*6.2+1300*13) = $24340