Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Estimated total machine-hours used Molding 2,500 4,000 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 13,000 $ 2.60 $ 16,800 $ 29,800 $ 3.40 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job P $ 25,000 $ 30,600 2,900 1,800 4,700 Job Q $ 14,000 $ 12,300 Fabrication 1,500 2,000 2,100 4,100 Total Total Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. 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 predetermined departmental overhead rates with machine-hours as the allocation base in both departments.
Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Estimated total machine-hours used Molding 2,500 4,000 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 13,000 $ 2.60 $ 16,800 $ 29,800 $ 3.40 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job P $ 25,000 $ 30,600 2,900 1,800 4,700 Job Q $ 14,000 $ 12,300 Fabrication 1,500 2,000 2,100 4,100 Total Total Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. 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 predetermined departmental overhead rates with machine-hours as the allocation base in both departments.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started,
completed, and sold only two jobs during the year-Job P and Job Q. The company uses a plantwide predetermined
overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be
required for the period's estimated level of production. Sweeten also estimated $29,800 of fixed manufacturing overhead
cost for the coming period and variable manufacturing overhead of $2.90 per machine-hour.
Because Sweeten has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide
overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following
additional information to enable calculating departmental overhead rates:
Estimated total machine-hours used
Molding Fabrication
2,500
1,500
Estimated total fixed manufacturing overhead.
Estimated variable manufacturing overhead per machine-hour
$ 13,000
$ 2.60
The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:
Direct materials
Direct labor cost
Actual machine-hours used:
Molding
Fabrication
Total
Job P
$ 25,000
$ 30,600
Foundational 2-13 (Algo)
2,900
1,800
4,700
13. If Job Q includes 30 units, what is its unit product cost?
Job Q
$ 14,000
$ 12,300
Total
4,000
$ 16,800 $ 29,800
$3.40
2,000
2,100
4,100
Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.
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 predetermined departmental overhead rates with
machine-hours as the allocation base in both departments.
Transcribed Image Text:Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started,
completed, and sold only two jobs during the year-Job P and Job Q. The company uses a plantwide predetermined
overhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would be
required for the period's estimated level of production. Sweeten also estimated $29,800 of fixed manufacturing overhead
cost for the coming period and variable manufacturing overhead of $2.90 per machine-hour.
Because Sweeten has two manufacturing departments-Molding and Fabrication-it is considering replacing its plantwide
overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following
additional information to enable calculating departmental overhead rates:
Estimated total machine-hours used
Estimated total fixed manufacturing overhead
Molding Fabrication
2,500
1,500
$ 16,800
$ 3.40
Estimated variable manufacturing overhead per machine-hour
$ 13,000
$ 2.60
The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:
Direct materials
Direct labor cost
Actual machine-hours used:
Molding
Fabrication
Total
Job P
$ 25,000
$ 30,600
Foundational 2-12 (Algo)
2,900
1,800
4,700
12. If Job P includes 20 units, what is its unit product cost?
Job Q
$ 14,000
$ 12,300
Total
2,000
2,100
4,100
Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.
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 predetermined departmental overhead rates with
machine-hours as the allocation base in both departments.
4,000
$ 29,800
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