eten 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 4, 200 $ 16,800 Fabrication 2,520 $ 25, 200 Total Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine- hour 6,720 $ 42,000 $ 1.40 $ 2.20 Job P $ 21,840 $ 35,280 Job Q $ 13,440 $ 12,600 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication 2,890 1,010 1,340 1,480 Total 3,900 2,820 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1 to 9, assume that Sweeten Company uses departmental predetermined overhead rates with machine- hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10 to 15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. ssume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish ng prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices oth jobs when stated on a per unit basis? (Do not round intermediate calculations. Round your final answers to nearest whole ar.) Job P Job Q price for the job ng price per unit
eten 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 4, 200 $ 16,800 Fabrication 2,520 $ 25, 200 Total Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine- hour 6,720 $ 42,000 $ 1.40 $ 2.20 Job P $ 21,840 $ 35,280 Job Q $ 13,440 $ 12,600 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication 2,890 1,010 1,340 1,480 Total 3,900 2,820 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. Required: For questions 1 to 9, assume that Sweeten Company uses departmental predetermined overhead rates with machine- hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10 to 15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. ssume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish ng prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices oth jobs when stated on a per unit basis? (Do not round intermediate calculations. Round your final answers to nearest whole ar.) Job P Job Q price for the job ng price per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:**Sweeten Company Overview:**
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It has two manufacturing departments—Molding and Fabrication. During March, the company started, completed, and sold only two jobs: Job P and Job Q. Below is the detailed information for these jobs and overall company operations for March.
**Manufacturing Data:**
| | Molding | Fabrication | Total |
|--------------------------------------|---------|-------------|-------|
| **Estimated Total Machine-Hours Used** | 4,200 | 2,520 | 6,720 |
| **Estimated Total Fixed Manufacturing Overhead** | $16,800 | $25,200 | $42,000|
| **Estimated Variable Manufacturing Overhead per Machine-Hour** | $1.40 | $2.20 | |
**Job Details:**
| | Job P | Job Q |
|------------------|--------|--------|
| **Direct Materials** | $21,840 | $13,440 |
| **Direct Labor Cost** | $35,280 | $12,600 |
| **Actual Machine-Hours Used:** | | |
| **Molding** | 2,890 | 1,340 |
| **Fabrication** | 1,010 | 1,480 |
| **Total** | 3,900 | 2,820 |
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
**Requirements:**
For questions 1 to 9, assume Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments. Job P included 20 units while Job Q included 30 units.
For questions 10 to 15, assume the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base.
**Pricing Strategy:**
Sweeten Company uses cost-plus pricing with a markup of 80% of total manufacturing cost to establish selling prices for all its jobs. Calculate the selling prices for Jobs P and Q on a per-unit basis, rounding final answers to the nearest whole dollar. Calculations should not round intermediate figures.
**Questions:**
- Total price for Job P and Job Q.
- Selling price per unit for both jobs based on the determined costs.
This detailed breakdown of costs and pricing strategies is essential
Expert Solution
Step 1 Introduction
The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base activity.
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