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Aleks04
1 month ago
8

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturin

g 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 Fabrication Total
Estimated total machine-hours used 2,500 1,500 4,000
Estimated total fixed manufacturing overhead $ 13,000 $ 16,800 $ 29,800
Estimated variable manufacturing overhead per machine-hour $ 2.60 $ 3.40
Job P Job Q
Direct materials $ 25,000 $ 14,000
Direct labor cost $ 30,600 $ 12,300
Actual machine-hours used:
Molding 2,900 2,000
Fabrication 1,800 2,100
Total 4,700 4,100
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?
2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q?
3. What was the total manufacturing cost assigned to Job P?
4. If Job P included 20 units, what was its unit product cost?
5. What was the total manufacturing cost assigned to Job Q?
6. If Job Q included 30 units, what was its unit product cost?
7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling for all of its jobs. What selling price would company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis?
8. What was Sweeten Company’s cost of goods sold for March?
9. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department?
10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?
11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?
12. If Job P included 20 units, what was its unit product cost?
13. If Job Q included 30 units, what was its unit product cost?
14. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis?
15. What was Sweeten Company’s cost of goods sold for March?
Business
2 answers:
Scilla [3.8K]1 month ago
8 0

1. Plantwide predetermined overhead rate = \frac{Total Fixed Manufacturing Overheads}{Total Estimated Hours}

Plantwide predetermined overhead rate = \frac{29800}{4000}

Plantwide predetermined overhead rate=$7.45

2. Manufacturing overheads applied to Jobs P and Q:

                                                                            P               Q

Variable Manufacturing Overheads

Molding                                                                 7540             5200

Fabrication                                                             6120             7140

Fixed Manufacturing Overheads

Molding                                                               21605           14900

Fabrication                                                           13410           15645

Total                                                                 48675           42885

3. Job P's total manufacturing cost amounts to $48,675.

4. If Job P consists of 20 units, unit cost calculation is:

  Direct Materials                                                       25000

  Direct Labor                                                           30600

  Manufacturing Overhead Applied                                   48675

  Total Product Cost                                                 104275

  Cost per Unit                                                         5213.75

5. Total manufacturing cost allocated to Job Q is $42,885.

6. For 30 units in Job Q, unit cost is:

  Direct Materials                                                       14000

  Direct Labor                                                           12300

  Manufacturing Overhead Applied                                   42885

  Total Cost                                                             69185

  Cost per Unit                                                         2306.16

7. Selling Prices:

  Job P:

  Total Cost ........................................................................... 104275

  Markup ................................................................................ 38940

  Selling Price ......................................................................... 143215

  Cost per Unit ...................................................................... 7160.75

  Job Q:

  Total Cost ............................................................................ 69185

  Markup ................................................................................ 34308

  Selling Price ......................................................................... 103493

  Cost per Unit ...................................................................... 3449.76

8. Cost of Goods Sold for March totals $173,460.




soldi70 [3.6K]1 month ago
3 0

Answer:

1. Computing plantwide predetermined overhead rate: divide total fixed manufacturing overhead by total estimated machine-hours.

Plantwide predetermined overhead rate: $29,800 ÷ 4,000 machine-hours

Resulting rate: $7.45 per machine-hour

2. Manufacturing overhead applied to Jobs P and Q:

P                   Q

Variable Overheads:

Molding         7,540             5,200

Fabrication     6,120             7,140

Fixed Overheads:

Molding         21,605           14,900

Fabrication     13,410           15,645

Total             48,675           42,885

3. Total manufacturing cost allocated to Job P equals $48,675.

4. Assuming Job P has 20 units, unit cost calculation:

Direct Materials: 25,000

Direct Labor: 30,600

Manufacturing overhead applied: 48,675

Total cost: 104,275

Unit cost: $5,213.75

5. Total manufacturing cost assigned to Job Q is $42,885.

6. For Job Q with 30 units, unit cost calculation:

Direct Materials: 14,000

Direct Labor: 12,300

Manufacturing overhead applied: 42,885

Total cost: 69,185

Unit cost: $2,306.16

7. Selling prices (cost plus 80% markup):

Job P Total Cost: $104,275

Markup (80%): $38,940

Selling Price: $143,215

Unit Selling Price: $7,160.75

Job Q Total Cost: $69,185

Markup (80%): $34,308

Selling Price: $103,493

Unit Selling Price: $3,449.76

8. Cost of Goods Sold for March: $173,460.

Details:

Subject: Business

Level: High school

Keywords:

• Total cost

• Selling price

• Unit cost

• Markup

• Fixed manufacturing overhead

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