Sweeten Company had no jobs in progress at the beginning of March and no beginni
ID: 2341144 • Letter: S
Question
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. t started only two jobs during March-Job P and Job Q Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional infcrmation 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 fowed manufacturing overhead10000 direct labor-hour Estimated total direct labor-hours to be worked Total actual manufacturing overhead costs incurred s12.500 21000500 1 125 points Required: What is the company's predetermined overhead rate? Relerences Book & Resources 03-05 Use -accounts t Leaming oive 03-02 Apply overhead cest toj ftin jb-dercing Difficulty 2 MediuLeamingie03-03 verage cost pr nt of a jo stal 3-01 Compute aUnderstnd the fow of costs ovenappled overhead cs and preae thejoualn 2. 15points How much manufacturing overhead was applied to Job P and Job Q?Explanation / Answer
Solution:
1)
Predetermined Overhead Rate = Estimated variable manufacturing overhead per direct labor hour + Estimated Fixed Manufacturing Overhead Per direct labor hour
Estimated Fixed Manufacturing Overhead Per direct labor hour = Total Estimated Fixed MOH $10,000 / Total Estimated Direct Labor hour 2,000
= $5 per DLH
Predetermined Overhead Rate = $1.00 + $5.00 = $6 per direct labor hour
2)
Applied Manufacturing Overhead to Jobs
Job P
Job Q
Actual Direct labor hours worked (A)
1400
500
Overhead Rate per DLH (B)
$6
$6
Applied Manufacturing Overhead (A*B)
$8,400
$3,000
3)
Direct labor hourly wage rate
Job P
Job Q
Direct Labor Costs (A)
$21,000
$7,500
Actual Direct labor hours worked (B)
1400
500
Direct labor hourly wage rate (A/B)
$15.00
$15.00
4)
If Job P includes 20 units, then its unit product cost is
Job P
Direct Materials
$13,000
Direct Labor Costs
$21,000
Applied Manufacturing Overhead
$8,400
Total Manufacturing Costs
$42,400
Total Units
20 Units
Unit Product Cost ($42,400 / 20)
$2,120
5)
Total Manufacturing Cost assigned to Job Q
Job Q
Direct Materials
$8,000
Direct Labor Costs
$7,500
Applied Manufacturing Overhead
$3,000
Total Manufacturing Costs
$18,500
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Pls ask separate question for remaining parts
Job P
Job Q
Actual Direct labor hours worked (A)
1400
500
Overhead Rate per DLH (B)
$6
$6
Applied Manufacturing Overhead (A*B)
$8,400
$3,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.