Required Informetiorn The following information applies to the questions display

Question

Required Informetiorn 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 Estimated total machine-hour used Estinated sotal fixed manufacturing ovezhead 2, 500 414,250 3.10 1, 500 17, SSO 3.90 ,000 $31,800 Direct materal Dixect labor cost Actual machine-hours uaed: Job PJob 9 sao, 000 16.500 34,600 $24,300 ,400 ,500 abrication Total 2. 300 5,700 2, 600 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 7. Assume that Sweeten Company used cost-plus pricing land 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 celculations. Round your final answers to nearest whole dollar) Total prioe for the job Selling price per unit

Explanation / Answer

Refering to the requirement for question 1 - 8 ...... plantwide overhead rate is to be calculated. Here question asked is numbered as 7. So Plantwide overhead rate is used to solve the question.

Fixed MOH - Plant wide rate = Total Overhead / Total Machine hours = 21600 / 4000 = 5.40

Answer to the question

Final answers are marked in Bold  

Job - P Job - Q Fixed MOH rate per hour 5.4 5.4 Variable MOH rate per hour 3.1 3.9 Total MOH rate per hour 8.5 9.3

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