Connes 2Homework 0 Sweeten Company had no jobs in progress a

Connes 2Homework 0 Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments-Molding and Fabricetion It 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 Eatinated total machine-hoars used Estinated total fixed manufacturing overhead Estinated variable nanufacturing ove rhead per machine-hour 1,5004,000 410,000 15.000 \"S,000 2, 500 1.40. 2.20 Direct materials Direct labor cost Actual machine-hours used: Holding 413,000 8,000 421,000 7,500 Eabrication Total 1,700800 900 -2,355 1,700 600 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month Required the allocation base For questions 9-15, the For questions 1-8.assume thar Sweeten Company uses a piantwide predetermined oveiheed rate with machine-hours as assume thet the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments Job P included 20 unts, what was its unt product cost?po not round intermediate calculations.) Prev12 13 14 15 of 19Next>

Solution

Cost per unit of Job - P = 2,525 ...........final answer

Explanation

For product - P.............. we are given with material cost and labor cost. But we have to estimate the Overhead recovery rate to be applied per machine hour in each of the Molding depratment and Fabrication Department.

Now we can directly go for calculation of total cost of Job - P for production of 20 Units and then compute the cost per unit in the last step by dividing the total cost with 20 Units.

Final solution

	Molding	Fabrication
Fixed overhead	10000	15000
Machine hours used	2500	1500
Fixed overhead per Mhour	4	10
Variable overhead per Mhour	1.4	2.2
Total overhead per hour	5.4	12.2