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 2,500 $15,000 $ 3.40 Fabrication 1,500 $18,000 $ 4.20 Total 4,000 $33,000 Job P $33,000 $37,000 Job $18,000 $15,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 3,700 2,600 6,300 2,800 2,900 5,700 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1-9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10-15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. 5. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) < Prev 5 6 7 8 of 8 Next > Real

Answer 1

Answer :

(5)

Step -1

Computation of departmental Predetermined overhead rate

Molding Department predetermined overhead rate

= Fixed overhead rate + Variable overhead rate

= $ 6 + $ 3.40

= $ 9.40

Fixed overhead rate in molding department

= Estimated Fixed manufacturing overhead / Estimated machine hour

= $ 15000 /2500 hour

   = $ 6

Fabrication Department predetermined overhead rate

= Fixed overhead rate + Variable overhead rate

= $ 12 + $ 4.20

= $ 16.20

Fixed overhead rate in Fabrication  department

= Estimated Fixed manufacturing overhead / Estimated machine hour

= $ 18000 / 1500 hour

= $ 12

Step -2

Computation of Unit product cost of Job -P

Direct material		$ 33000
Direct Labor		$ 37000
Overhead applied
Molding Department 3700 hour * $ 9.40	$ 34780
Fabrication Department 2600 hour * $ 16.20	$ 42120	$ 76900
Total Manufacturing cost ( a)		$ 146900
Number of unit (b)		20
Unit product cost (a) / (b)		$ 7345