Sweeten Company had no jobs in progress at the beginning of

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 4,000 $12,250 $16,350 $28,600 2,500 1,500 $ 2.30 3.10 Job Q $22,000 $12,500 $28,200 $11,100 Job P Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,600 1,500 4,100 1,700 1.800 3,500 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 Foundational 2-6 6. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.

Solution

Answer 6. Total Fixed Overhead    28,600.00 Variable MOH - Molding - $2.30 X 2,500 Mach Hrs      5,750.00 Variable MOH - Fabrication - $3.10 X 1,500 Mach Hrs      4,650.00 Total Overhead    39,000.00 Predetermined Overhead Rate = $39,000 (Total Overhead) / 4,000 Mach. Hrs. (Allocation Base) Predetermined Overhead Rate = $9.75 per Mach Hr. Job Q Direct Materials    12,500.00 Direct Labor Costs    11,100.00 Overhead Applied - $9.75 X 3,500 Hrs    34,125.00 Total Costs    57,725.00 No. of Units            30.00 Unit Product Cost      1,924.17