IThe following information applies to the questions displaye

IThe following information applies to the questions displayed below Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March-Job P and Job Q. Job P was compieted and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. The following additional Information is avalilable for the company as a whole and for Jobs P and Q (all data and questions relate to the month of Marchj Estimated totai fixed manufacturing overhead Estimated varlable manufacturing overhead per direct labor-hour Estimated total direct labor-hours to be worked Total actual manufacturing overhead costs incurred $14.000 $ 1.40 3.500 $ 19,000 Direct materials Direct labor cost Actual direct tabor-hours worked Job P Job O $ 15.000 $ 9.500 s 52.000 s 15000 2.600750

Solution

Solution: Transaction General Journal Debit Credit 1. Work in process 18,090 Manufacturing overhead 18,090 [Being manufacturing overhead costs applied to production.] Working Notes: Total estimated manufacturing overhead cost = Total variable manufacturing Overhead + Total fixed manufacturing overhead Total variable manufacturing overhead = total direct labor hours x manufacturing OH per DLH = 3,500 x 1.40 = $4,900 Total estimated fixed manufacturing OH = $14,000 Hence, Total estimated manufacturing overhead cost = Total variable manufacturing Overhead + Total fixed manufacturing overhead = $4,900+$14,000 =$18,900 Now Predetermined manufacturing overhead rate = Total estimated manufacturing overhead / Total estimated direct labor hours =$18,900/3500 = 5.40 per direct labor hour Manufacturing OH is applied at this predetermined OH rates a b c=axb Job Actual direct labor worked Predetermined OH rate Manufacturing Overhead Job P 2,600 5.4                     14,040 Job Q 750 5.4                        4,050 Total                     18,090 Please feel free to ask if anything about above solution in comment section of the question.