Required information[The following information applies to the questions displayed below.)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 predeterminedoverhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would berequired for the period's estimated level of production. Sweeten also estimated $29,800 of fixed manufacturing overheadcost 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 plantwideoverhead rate with departmental rates that would also be based on machine-hours. The company gathered the followingadditional information to enable calculating departmental overhead rates:Estimated total machine-hours usedEstimated total fixed manufacturing overheadMolding Fabrication2,5001,500$13,000 $ 16,800$2.60 $ 3.40Estimated variable manufacturing overhead per machine-hourThe direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:Direct materials.Direct labor costActual machine-hours used:HoldingFabricationTotal» Show Transcribed TextJob P$25,000$30,600Unit product cost2,9001,0004,700» Show Transcribed TextJob Q$ 14,000$ 12,300Sweeten 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 asthe allocation base. For questions, 9-15, assume that the company uses predetermined departmental overhead rates withmachine-hours as the allocation base in both departments.< Prev2,0002,1004,1008ĆTotalof 8Next4,000$ 29,8006. If Job Q includes 30 units, what is its unit product cost? (Do not round intermediate calculations. Round your final answer tonearest whole dollar.)

The pre-determined overhead rate is calculated as the estimated overhead costs divided by the…

Required information [The following information applies to the questions displayed below.) 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: Direct materials Direct labor cost Actual machine-hours used: Holding Fabrication Total Molding Fabrication 2,500 1,500 $13,000 $ 16,800 $2.60 $ 3.40 Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job P Job Q $25,000 $ 14,000 $30,600 $ 12,300 2,900 1,000 4,700 Total 2,000 2,100 4,100 4,000 $ 29,800 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.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q