Sweeten Company had no jobs in progress at the beginning of March and no beginni
ID: 2609702 • Letter: S
Question
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-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabrication Total 4,000 $12,250 $16,350 $28,600 2,500 1,500 $ 2.30 3.10 Job P Job Q $22,000 $12,500 $28,200 $11,100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,600 1,500 4,100 1,700 1,800 3,500 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 rate:s with machine-hours as the allocation base in both departmentsExplanation / Answer
14.
Job P
Job Q
Total price for the job
161856
109872
Units
20
30
Selling price per unit
8092.80
3662.40
Workings:
Molding
Fabrication
Estimated total fixed manufacturing overhead
12250
16350
Estimated total machine hours used
2500
1500
Estimated fixed manufacturing overhead per machine hour
4.90
10.90
Estimated variable manufacturing overhead per machine hour
2.30
3.10
Total estimated overhead rate
7.20
14.00
Job P
Job Q
a
Direct materials
22000
12500
b
Direct labor cost
28200
11100
c
Actual machine hours used - Molding
2600
1700
d
Overheads - Molding (c * 7.20)
18720
12240
e
Actual machine hours used - Fabrication
1500
1800
f
Overheads - Fabrication (e * 14.00)
21000
25200
g
Total Cost (a + b + d + f)
89920
61040
h
Markup ( g * 80%)
71936
48832
i
Sales ( g + h)
161856
109872
Job P
Job Q
Total price for the job
161856
109872
Units
20
30
Selling price per unit
8092.80
3662.40
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