The Foundational 15 LO21 LO22 LO23 LO24 The following inform

The Foundational 15 [LO2-1, LO2-2, LO2-3, LO2-4] [The following information applies to the questions displayed below.] 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) Molding Fabrication Total 4,000 $10,500 $15,300 $25,800 1,500 Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour 2,500 $ 1.60 2.40 Job Q $15,000 $9,000 $22,600 $8,300 Job P Direct materials Direct labor cost Actual machine-hours used: Moldinçg Fabrication Total 1,900 800 1,000 1.100 2,100 2,700 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

Solution

Overhead Rate=$25800/4000hrs=$6.45/MHR

Manufacturing overhead applied

Job P= $6.45×2700= $17415

Job Q=$6.45+2100=$13545

Total manufacturing costs of Job P=

Variable=1900×$1.6+800×$2.4=$4960

Fixed=$17415

Total=$22375

Total cost for job P= Material+Labour+ Manufacturing costs

=$15000+$22600+$22375=$59975

Unit cost for 20 units=$59975/20=$2998.75

Total costs for Job Q=$9000+$8300+$4240+$13575=$35085

(Variable=1000×$1.6+1100×$2.4; Fixed=$6.45×2100)

Unit cost for 30 units in job Q=$35085/30=$1169.5

Pricing Strategy= Cost plus 80%markup

Job P= $59975+80%×$59975=$107955

Job Q=$35085+80%×$35085=$63153

Selling price per unitof Job P= $107955/20=$5397.75

Selling Price per unit of Job Q=$63153/30=$2105.1

Due to heavy calculations involved i am unable to solve the question further. Inconvenience is regretted.

Happy Learning :)