Required information The Foundational 15 LO21 LO22 LO23 LO24

Required information 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): Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabrication Total 4,000 $11,500 $15,900 $27,400 2,500 1,500 $ 2.00 2.80 Job P Job Q $19,000 $11,000 $25,800 9,900 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,300 1,200 3,500 1,400 1,500 2,900 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 Prey 1 2 3 ..15 of 15

Solution

1. Predetermined overhead rate = estimated fixed manufacturing overhead/estimated total machine hours + (estimated variable manufacturing overhead per machine hour)

= 27,400/4,000 + (2+2.8)

= 6.85+2+2.8

= 11.65 per MH