tmheducationcomflowconnecthtm omewok Sweeten Company had no

tmheducation.com/flow/connect.htm omewok 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 folowing 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 Marchl: Estinated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour 2, 500 10,000 1.40 1,500 15,000 2.20 4, 000 25,000 Job P Job Q 413,000 48,000 621,000 7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 800 900 -2,300 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 10. How much manufacturing overhead was appied from the Molding Department to Job P and how much was applied to Job Q? (Do not round Intermedlate celculetions.) Prev 101112, 15 of 19 Next>

Solution

10)

Pre-determined fixed overhead rate, based on MH = Total fixed manufacturing overhead / Total MH available

Molding = $10000 / 2500 = $4 per MH

Fabrication = $15000 / 1500 = $10 per MH

Manufacturing Overhead Applied to :

Job P = (predetermined fixed overhead rate per MH + estimated variable manufacturing overhead per MH) * MH used

= Molding ($4 + $1.40) * 1700 = $9180 + Fabrication ($10 + $2.20) * 600 = $7320

= $16500

Job Q = (predetermined fixed overhead rate per MH + estimated variable manufacturing overhead per MH) * MH used

= Molding ($4 + $1.40) * 800 = $4320 + Fabrication ($10 + $2.20) * 900 = $10980

= $15300