Estimated total machinehours used 2 500 1500 4000 Estimated

Estimated total machine-hours used 2, 500 1,500 4,000 Estimated total fixed manufacturing overhead$10,000 Estimated variable manufacturing overhead per machine-hour 15,000 $25,000 per s 1.40 2.20 $13,000 $8,000 $21,000 $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 4. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Solution

ans)

Predetermined Overhead Rate = Estimated Fixed Overhead/Estimated Direct Labor Hours + Variable OverheadRate Per Hour

Estimated total overhead = Estimated total fixed manufacturing overhead (25000) + variable overhead molding(machine hours:2500*var overhead per machine hour molding:1.40) + variable overhead fabrication (machinehours:1500*var overhead per machine hour fabrication:2.20)

= 25000 + 3500 + 3300 = 31800

Plantwide predetermined rate = estimated total overhead (31800)\\estimated total machine hours (4000) =7.95

Manufacturing overhead = direct materials + direct labor + (predetermine overheadrate*machine hours)

Job P = overhead rate * total machine hours = 7.95 X 2300 = 18285

Total manufacturing cost = direct materials + direct labor + manufacturing overhead

= 13,000 + 21000 + 18285 = 52285

Unit product cost = total manufacturing cost \\ total units =52285\\ 20 = 2614.25