Estimated total machinehours used Estimated total fixed over

Estimated total machine-hours used Estimated total fixed overhead Estimated variable manufacturing overhead per machine-hour 2, 500 manufacturing overhead$10,000 1,500 4,000 15,000 $25,000 Direct materials Direct labor cost Actual machine-hours used Molding Fabrication Total $13,000 $8,000 $21,000 $7,500 1,700800 900 2,3001,700 600 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-h the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rat machine-hours as the allocation base in both departments. 5. What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.)

Solution

Molding:

Estimated Variable Manufacturing Overhead per MH = $1.40
Estimated MH used = 2,500

Estimated Variable Manufacturing Overhead = Estimated Variable Manufacturing Overhead per MH * Estimated MH used
Estimated Variable Manufacturing Overhead = $1.40 * 2,500
Estimated Variable Manufacturing Overhead = $3,500

Estimated Fixed Manufacturing Overhead = $10,000

Total Estimated Manufacturing Overhead = Estimated Variable Manufacturing Overhead + Estimated Fixed Manufacturing Overhead
Total Estimated Manufacturing Overhead = $3,500 + $10,000
Total Estimated Manufacturing Overhead = $13,500

Fabrication:

Estimated Variable Manufacturing Overhead per MH = $2.20
Estimated MH used = 1,500

Estimated Variable Manufacturing Overhead = Estimated Variable Manufacturing Overhead per MH * Estimated MH used
Estimated Variable Manufacturing Overhead = $2.20 * 1,500
Estimated Variable Manufacturing Overhead = $3,300

Estimated Fixed Manufacturing Overhead = $15,000

Total Estimated Manufacturing Overhead = Estimated Variable Manufacturing Overhead + Estimated Fixed Manufacturing Overhead
Total Estimated Manufacturing Overhead = $3,300 + $15,000
Total Estimated Manufacturing Overhead = $18,300

Total Estimated Manufacturing Overhead = Total Estimated Manufacturing Overhead (Molding) + Total Estimated Manufacturing Overhead (Fabrication)
Total Estimated Manufacturing Overhead = $13,500 + $18,300
Total Estimated Manufacturing Overhead = $31,800

Total MH used = 4,000

Predetermined Overhead Rate = Total Estimated Manufacturing Overhead / Total MH used
Predetermined Overhead Rate = $31,800 / 4,000
Predetermined Overhead Rate = $7.95

Job Q:

Total MH used = 1,700
Predetermined Overhead Rate = $7.95

Manufacturing Overhead assigned = Total MH used * Predetermined Overhead Rate
Manufacturing Overhead assigned = 1,700 * $7.95
Manufacturing Overhead assigned = $13,515

Total Manufacturing Cost = Direct Materials + Direct Labor + Manufacturing Overhead assigned
Total Manufacturing Cost = $8,000 + $7,500 + $13,515
Total Manufacturing Cost = $29,015

Total manufacturing cost assigned to Job Q is $29,015