Question

[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 Total 2,500 1,500 4,000 $10,000 $ 15,000 $ 25,000 $ 1.40 $ 2.20 Job P $13,000 $21,000 Job $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. 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.

Answer 1

Answer 1.
Molding Department:

Estimated manufacturing overhead = Estimated variable manufacturing overhead per machine hour * Estimated machine hours + Estimated fixed manufacturing overhead
Estimated manufacturing overhead = $1.40 * 2,500 + $10,000
Estimated manufacturing overhead = $13,500

Fabricating Department:

Estimated manufacturing overhead = Estimated variable manufacturing overhead per machine hour * Estimated machine hours + Estimated fixed manufacturing overhead
Estimated manufacturing overhead = $2.20 * 1,500 + $15,000
Estimated manufacturing overhead = $18,300

Total estimated manufacturing overhead = $13,500 + $18,300
Total estimated manufacturing overhead = $31,800

Predetermined overhead rate = Total estimated manufacturing overhead / Total estimated machine hours
Predetermined overhead rate = $31,800 / 4,000
Predetermined overhead rate = $7.95

Answer 2.
Job P:
Manufacturing overhead applied = Predetermined overhead rate * Actual machine hours
Manufacturing overhead applied = $7.95 * 2,300
Manufacturing overhead applied = $18,285

Job Q:
Manufacturing overhead applied = Predetermined overhead rate * Actual machine hours
Manufacturing overhead applied = $7.95 * 1,700
Manufacturing overhead applied = $13,515

Answer 4.
Job P:
Total manufacturing cost = Direct materials + Direct labor + Manufacturing overhead applied
Total manufacturing cost = $13,000 + $21,000 + $18,285
Total manufacturing cost = $52,285

Unit product cost = Total manufacturing cost / Units produced
Unit product cost = $52,285 / 20
Unit product cost = $2,614

Answer 5.
Job Q:

Total manufacturing cost = Direct materials + Direct labor + Manufacturing overhead applied
Total manufacturing cost = $8,000 + $7,500 + $13,515
Total manufacturing cost = $29,015

Answer 6.
Job Q:

Unit product cost = Total manufacturing cost / Units produced
Unit product cost = $29,015 / 30
Unit product cost = $967