Question

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 (all data and questions relate to the month of March): Estimated total machine-hours used Molding Fabrication Total 2,500 Estimated total fixed manufacturing overhead 1,500 4,000 $13,250 $16,950 $30,200 Estimated variable manufacturing overhead per machine-hour $ 2.70 Direct materials Direct labor cost Actual machine-hours used Molding Fabrication Total Job P Job $26,000 $14,500 $31,400 $12,700 3,000 2,100 1,900 2,200 4,900 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. 2. How much manufacturing overhead was applied to Job P and how much was applied to Job ? (Do not round Intermediate calculations.) Jobp Job Manufacturing overhead sooled

Answer 1

Estimated machine hours of molding department = 2,500

Estimated variable manufacturing overhead per machine hour of molding department = $2.70

Estimated total variable manufacturing overhead of molding department = Estimated machine hours of molding department x Estimated variable manufacturing overhead per machine hour of molding department

= 2,500 x 2.70

= $6,750

Estimated machine hours of fabrication department = 1,500

Estimated variable manufacturing overhead per machine hour of fabrication department = $3.50

Estimated total variable manufacturing overhead of fabrication department = Estimated machine hours of fabrication department x Estimated variable manufacturing overhead per machine hour of fabrication department

= 1,500 x 3.50

= $5,250

Total estimated variable manufacturing overhead = Estimated total variable manufacturing overhead of molding department + Estimated total variable manufacturing overhead of fabrication department

= 6,750+5,250

= $12,000

Estimated total fixed manufacturing overhead = $30,200

Total estimated manufacturing overhead = Total estimated variable manufacturing overhead + Estimated total fixed manufacturing overhead

= 12,000+30,200

= $42,200

Total estimated machine hours = 4,000

Predetermined overhead rate = Total estimated manufacturing overhead/ Total estimated machine hours

= 42,200/4,000

= $10.55 per machine hour

Actual machine hours used in Job P = 4,900

Manufacturing overhead applied for Job P = Actual machine hours used in Job P x Predetermined overhead rate

= 4,900 x 10.55

= $51,695

Actual machine hours used in Job Q = 4,300

Manufacturing overhead applied for Job Q = Actual machine hours used in Job Q x Predetermined overhead rate

= 4,300 x 10.55

= $45,365

	Job P	Job Q
Manufacturing overhead applied	$51,695	$45,365

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