or questions 1-9, 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 10-15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. 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? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)
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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):
| Molding | Fabrication | Total | |||||||
| Estimated total machine-hours used | 2,500 | 1,500 | 4,000 | ||||||
| Estimated total fixed manufacturing |
$ | 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 1-9, 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 10-15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base.
14. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total
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