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 Q $22,000 $12,500 $28,200 $11,100 Job P 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 rates with machine-hours as the allocation base in both departments Foundational 2-11 11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?

Solution

Fabrication department predetermined overhead rate = $16350/1500 = $10.90

Manufacturing overhead from Fabrication department applied to:

Job P: 1800 x $10.90 = $19620

Job Q: 1500 x $10.90 = $16350