2 Sweeten Company had no jobs In progress at the beginning of March and no begin

Question

2 Sweeten Company had no jobs In progress at the beginning of March and no beginning inventories. The company hes olding and Fabrication. It started, completed, and sold only two jobs during March--Job al information is avallable for the company as a whole and for Jobs P and Q (all data Part 2 of 15 and questions relate to the month of March): Estimated total machine-hours used Estimated total fixed manufacturing overhead $10,500 15,300 25,800 Estimated variable manufacturing overhead per 2,500 1,5004,000 machine-hour ç 1.60 2.40 Job P Job Q 15,000 9,000 422,600 $8,300 Direct materials Direct labor cost Actual machine-hours used: Molding Eabrication Total 1,900 1,000 8001,100 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 2How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round Intermediate Job p Job Q

Explanation / Answer

First we calculate the predetermined rate and accordingly manufacturing overhead would apply to Job P and Job Q Estimated total overhead = Estimated total fixed manufacturing overhead + Variable overhead molding + Variable overhead fabrication Estimated total overhead = $25800 + (2500*1.60) + (1500*2.40) Estimated total overhead = $33400 Predetermined overhead rate = Estimated total overhead/machine hours $33400/(2500+1500) Predetermined overhead rate = $ 8.35 Manufacturing overhead applied = (predetermined rate*machine hours) Job P Overhead rate*Total machine hours $8.35*2700 $22,545 Job Q Overhead rate*Total machine hours $8.35*2100 $17,535

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.