Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $23,000 $29,000 2,700 1,600 4,300 Job Q $13,000 $11,500 1,800 1,900 3,700 Molding Fabrication Total 2,500 1,500 4,000 $12,500 $16,500 $29,000 $2.40 $ 3.20 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.

Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $23,000 $29,000 2,700 1,600 4,300 Job Q $13,000 $11,500 1,800 1,900 3,700 Molding Fabrication Total 2,500 1,500 4,000 $12,500 $16,500 $29,000 $2.40 $ 3.20 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.

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Description: Estimated total machine-hours usedEstimated total fixed manufacturing overheadEstimated variable manufacturing overhead per machine-hourDirect materialsDirect labor costActual machine-hours used:MoldingFabricationTotalTotal price for the jobSelling

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Estimated total machine-hours used
Estimated total fixed manufacturing overhead
Estimated variable manufacturing overhead per machine-hour
Direct materials
Direct labor cost
Actual machine-hours used:
Molding
Fabrication
Total
Total price for the job
Selling price per unit
Job P
$23,000
$29,000
Job P
2,700
1,600
4,300
Job Q
Job Q
$13,000
$11,500
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.
1,800
1,900
3,700
7. 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 assuming 20 units were produced for Job P and 30 units were produced for Job Q? (D-
not round intermediate calculations. Round your final answers to nearest whole dollar.)
Molding Fabrication Total
2,500
1,500 4,000
$12,500 $16,500 $29,000
$ 2.40 $ 3.20

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