Question

Required information

[The following information applies to the questions displayed below.]

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	$	14,500		$	17,700		$	32,200
Estimated variable manufacturing overhead per machine-hour	$	3.20		$	4.00

	Job P			Job Q
Direct materials	$	31,000		$	17,000
Direct labor cost	$	35,400		$	14,700
Actual machine-hours used:
Molding		3,500			2,600
Fabrication		2,400			2,700
Total		5,900			5,300

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.

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

Answer 1

	overhead rate
	Molding
	Fixed manufacturing overhead			(14500/2500)=		5.8
	Variable manufacturing overhead					3.2
	total predetermined overhead rate					9
	Fbrication
	Fixed manufacturing overhead			(17700/1500)		11.8
	Variable manufacturing overhead					4
	total predetermined overhead rate					15.8
	Job P
	Direct materials					31000
	Direct labor cost					35,400
	overhead applied
	Molding		(9*3500)			31500
	Fabrication		(15.8*2400)			37920
	total overhead					135820
	unit product cost =		135820/20
			6791