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1. What is the company’s predetermined overhead rate? (Round your answer to 2 de

ID: 2421757 • Letter: 1

Question

1. What is the company’s predetermined overhead rate? (Round your answer to 2 decimal places.)

2. How much manufacturing overhead was applied to Job P and Job Q? (Round your intermediate calculations to 2 decimal places.)

What is the direct labor hourly wage rate? For Job P and Job Q

4a. If Job P includes 30 units, what is its unit product cost?

4b. What is the total amount of manufacturing cost assigned to Job Q as of the end of March (including applied overhead)?

5. What is the amount of underapplied or overapplied overhead?

3.

What is the direct labor hourly wage rate? For Job P and Job Q

4a. If Job P includes 30 units, what is its unit product cost?

4b. What is the total amount of manufacturing cost assigned to Job Q as of the end of March (including applied overhead)?

5. What is the amount of underapplied or overapplied overhead?

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. It 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 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 fixed manufacturing overhead Estimated variable manufacturing overhead per direct labor-hour Estimated total direct labor-hours to be worked Total actual manufacturing overhead costs incurred $15,000 $ 2.00 3,000 $ 19,000 Direct labor cost Actual direct labor-hours worked $ 19,500 $ 9,000 $31,500 $ 7,500 2,100 500

Explanation / Answer

Answer

Answer 1

1. What is the company’s predetermined overhead rate?

Figures in $

Particulars

Amount

Estimated total Fixed manufacturing Overhead

a

15000

Estimated variable manufacturing Overhead per direct labor hour

b

2

Estimated total direct labor hours to be worked

c

3000

Estimated total variable manufacturing Overhead (b*c)

d

6000

Estimated total manufacturing Overhead   (a+d)

e

21000

Predetermined manufacturing Overhead per direct labour hour (e/c)

7

Answer 2

2. How much manufacturing overhead was applied to Job P and Job Q?

         Figures in $

Particulars

Job P

Job Q

Predetermined manufacturing Overhead per direct labour hour

a

7

7

Actual direct labour hours worked

b

2100

500

Manufacturing overhead applied     (a*b)

14700

3500

Answer 3

3. What is the direct labor hourly wage rate? For Job P and Job Q

Figures in $

Particulars

Job P

Job Q

Direct labour Cost

a

31500

7500

Actual direct labour hours worked

b

2100

500

Direct labor hourly wage rate (a/b)

15

15

Answer 4

4a. If Job P includes 30 units, what is its unit product cost?

Figures in $

Particulars

Amount

Direct materials

a

19500

Direct labour cost

b

31500

Predetermined manufacturing overhead

c

14700

(2100*7)

Total Product cost (a+b+c)

d

65700

Number of units in Job P

e

30

Unit product cost for job P    (d/e)

2190

4b. What is the total amount of manufacturing cost assigned to Job Q as of the end of March (including applied overhead)?

Figures in $

Particulars

Amount

Direct materials

a

9000

Direct labour cost

b

7500

Predetermined manufacturing overhead

c

3500

(500*7)

Total manufacturing cost for job Q       (a+b+c)

d

20000

Answer 5

5. What is the amount of underapplied or overapplied overhead?

Figures in $

Particulars

Amount

Applied manufacturing overhead

a

18200

(14700+3500)

Total Actual manufacturing overhead costs incurred

b

19000

Under applied Overhead (a-b)

-800

Figures in $

Particulars

Amount

Estimated total Fixed manufacturing Overhead

a

15000

Estimated variable manufacturing Overhead per direct labor hour

b

2

Estimated total direct labor hours to be worked

c

3000

Estimated total variable manufacturing Overhead (b*c)

d

6000

Estimated total manufacturing Overhead   (a+d)

e

21000

Predetermined manufacturing Overhead per direct labour hour (e/c)

7