Required information The following information applies to th

Required information 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): Molding Pabrication Total Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour 2,500 1,500 4,000 $11,000 $15,600 $26,600 $1.80 2.60 Job o $17,000 10,000 $24,200 9,100 Job P Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,100 1,000 3,100 1,200 1,300 2,500 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 1. What was the company\'s plantwide predetermined overhead rate? (Round your answer to 2 decimal places.) 8.75 per MH

Solution

Solution 1:

Total manufacturing overhead = Variable manufactruing overhead + Fixed manufacturing overhead

= (2500 * $1.80 + 1500 * $2.60) + $26,600 = $35,000

Plantwide predetermined overhead rate = Estimated manufacturing overhead / Estimated machine hours

= $35,000 / 4000 = $8.75 per MH

Solution 2:

Overhead applied to Job P = Actual machine hours * Overhead rate = 3100 * $8.75 = $27,125

Overhead applied to Job Q = Actual machine hours * Overhead rate = 2500 * $8.75 = $21,875

Solution 4:

Total Product Cost of Job P = Direct material cost + Direct labor cost + Overhead applied

= $17,000 + $24,200 + $27,125 = $68,325

Nos of units in Job P = 20 units

Unit product cost = $68,325 / 20 = $3,416