Question

Required information [The following information applies to the questions displayed below.] Sweeten Company had no jobs...

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.

14. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Molding = (14500/2500+3.2) = 9 per hour

Fabrication = (17700/1500+4) = 15.8 per hour

Calculate Selling price

 Job P Job Q Direct material 31000 17000 Direct labor 35400 14700 Overhead Molding 3500*9 = 31500 2600*9 = 23400 Fabrication 2400*15.8 = 37920 2700*15.8 = 42660 Total manufacturing cost 135820 97760 Markup@80% 108656 78208 Selling price of Job 244476 175968 Unit 20 30 Selling price per unit 12224 5866