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 2,500 1,500 4,000 $10,000 $15, eee $25,000 $ 1.40 $ 2.20 Job P $13,000 $21,000 Job Q $8,000 $7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 2,300 800 900 1,700 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Answer 1

solution:

4

Unit product cost

2614

6.

Unit product cost

967

Explanation:

Plant wide predetermined rate = Estimated total overhead / estimate total machine hours = 31800*/ 4000 = 7.95

*Estimated total overhead = 25000 + (2500 x 1.4) + (1500 2.2) = 31800

Manufacturing overhead applied to P and Q:

Job P = Overhead rate x total machine hours = 2300 x 7.95 = 18285

Job Q = Overhead rate x total machine hours = 1700 x 7.95 = 13515

Total manufacturing cost of P = Direct materials + direct labour + manufacturing overhead = 13000+21000+18285 = 52285

Total manufacturing cost of Q = Direct materials + direct labour + manufacturing overhead = 8000 + 7500 + 13515 = 29015

Unit product cost of P = Total Manufacturing cost / total units = 52285 /20 = 2614.25 = 2614

Unit product cost of Q = Total manufacturing cost / total units = 29015/30 = 967