Question

Required information [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-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabrication 2,500 1,500 $12,000 $16,200 $ 2.20 $ 3.00 Total 4,000 $28,200 Job P $21,000 $27,400 Job Q $12,000 $10,700 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,500 1,400 3,900 1,600 1,700 3,300 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. 1. What was the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.) Predetermined overhead rate per MH

13. If Job Q included 30 units, what was its unit product cost?

14. Assume that Sweeten Company used cost-plus pricing (and 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?

15. What was Sweeten Company’s cost of goods sold for March?

Answer 1

1) Plant wide predetermined rate= Estimated total overhead/ estimated total machine hours

= (2500*$2.20+1500*$3.00)+$28200/4000

= $9.55 per machine hour

13) Predetermined overhead rate= (Estimated total fixed overhead/Estimated total machine hours)+ Estimated total variable manufacturing overhead per hour

Molding= $12000/2500+$2.20= $7.00 per MH

Fabrication= $16200/1500+$3.00= $13.80 per MH

Direct materials	$12000
Direct labor	10700
Manufacturing overhead applied (1600*$7.00+1700*$13.80)	34660
Total manufacturing cost	$57360
/ Number of units	30
Unit product cost	$1912

14)

	Job P	Job Q
Direct materials	$21000	$12000
Direct labor	27400	10700
Manufacturing overhead applied ()	36820	34660
Total manufacturing cost	$85220	$57360
Add: Markup (80%)	(85220*80%)= 68176	(57360*80%)= 45888
Selling price	$153396	$103248
/ Number of units	20	30
Selling price per unit	$7669.8	$3441.6

Manufacturing overhead applied to Job P= 2500*$7.00+1400*$13.80= $36820

Manufacturing overhead applied to Job Q= 1600*$7.00+1700*$13.80= $34660

15) Cost of goods sold for march= Total manufacturing cost of Job P+Total manufacturing cost of Job Q

= $85220+57360= $142580