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 1,700 1,5001,800 3,500 2,600 4,100 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the montih 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 2-2 2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate ralculatinns.

Solution

Molding Department:

Estimated MH used = 2,500
Variable Manufacturing Overhead per MH = $2.30
Fixed Manufacturing Overhead = $12,250

Estimated Manufacturing Overhead = Estimated MH used * Variable Manufacturing Overhead per MH + Fixed Manufacturing Overhead
Estimated Manufacturing Overhead = 2,500 * $2.30 + $12,250
Estimated Manufacturing Overhead = $18,000

Fabrication Department:

Estimated MH used = 1,500
Variable Manufacturing Overhead per MH = $3.10
Fixed Manufacturing Overhead = $16,350

Estimated Manufacturing Overhead = Estimated MH used * Variable Manufacturing Overhead per MH + Fixed Manufacturing Overhead
Estimated Manufacturing Overhead = 1,500 * $3.10 + $16,350
Estimated Manufacturing Overhead = $21,000

Total Estimated Manufacturing Overhead = Estimated Manufacturing Overhead (Molding Department) + Estimated Manufacturing Overhead (Fabrication Department)
Total Estimated Manufacturing Overhead = $18,000 + $21,000
Total Estimated Manufacturing Overhead = $39,000

Plantwide Predetermined Overhead Rate = Total Estimated Manufacturing Overhead / Total MH used
Plantwide Predetermined Overhead Rate = $39,000 / 4,000
Plantwide Predetermined Overhead Rate = $9.75 per MH

Job P:

Plantwide Predetermined Overhead Rate = $9.75 per MH
Number of MH used = 4,100

Manufacturing Overhead applied = Plantwide Predetermined Overhead Rate * Number of MH used
Manufacturing Overhead applied = $9.75 * 4,100
Manufacturing Overhead applied = $39,975

Job Q:

Plantwide Predetermined Overhead Rate = $9.75 per MH
Number of MH used = 3,500

Manufacturing Overhead applied = Plantwide Predetermined Overhead Rate * Number of MH used
Manufacturing Overhead applied = $9.75 * 3,500
Manufacturing Overhead applied = $34,125