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 P Job Q $22,000 $12,500 $28,200 $11,100 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 rate:s with machine-hours as the allocation base in both departments

Solution

14.

Job P

Job Q

Total price for the job

161856

109872

Units

20

30

Selling price per unit

8092.80

3662.40

Workings:

Molding

Fabrication

Estimated total fixed manufacturing overhead

12250

16350

Estimated total machine hours used

2500

1500

Estimated fixed manufacturing overhead per machine hour

4.90

10.90

Estimated variable manufacturing overhead per machine hour

2.30

3.10

Total estimated overhead rate

7.20

14.00

Job P

Job Q

a

Direct materials

22000

12500

b

Direct labor cost

28200

11100

c

Actual machine hours used - Molding

2600

1700

d

Overheads - Molding (c * 7.20)

18720

12240

e

Actual machine hours used - Fabrication

1500

1800

f

Overheads - Fabrication (e * 14.00)

21000

25200

g

Total Cost (a + b + d + f)

89920

61040

h

Markup ( g * 80%)

71936

48832

i

Sales ( g + h)

161856

109872

	Job P	Job Q
Total price for the job	161856	109872
Units	20	30
Selling price per unit	8092.80	3662.40