Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 $26,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.10 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 Holding 2,500 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 11,000 $ 1.80 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: Holdine Job P $ 17,000 $ 24,200 2.100 Job 0 $ 10,000 $9,100 1.200 Fabrication 1,500 $ 15,600 $ 2.60 Total 4,000 $ 26,600

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 $26,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.10 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 Holding 2,500 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 11,000 $ 1.80 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: Holdine Job P $ 17,000 $ 24,200 2.100 Job 0 $ 10,000 $9,100 1.200 Fabrication 1,500 $ 15,600 $ 2.60 Total 4,000 $ 26,600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format ?

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 $26.600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.10 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 i Holding Fabrication 2,500 1,500 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 11,000 $ 1.80 $ 15,600 $ 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 Job P $ 17,000 $ 24,200 2.100 Job 0 $ 10,000 $9,100 1.200 Total 4,000 $ 26,600
Transcribed Image Text: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 $26.600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.10 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 i Holding Fabrication 2,500 1,500 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 11,000 $ 1.80 $ 15,600 $ 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 Job P $ 17,000 $ 24,200 2.100 Job 0 $ 10,000 $9,100 1.200 Total 4,000 $ 26,600
THE URELLE CUS, UNELLI LUS, du marcurs use to our aiu ware as IUROWS. Direct materials Direct labor cost Actual machine-hours used: Holding Fabrication Total Molding Department Fabrication Department Answer is not complete. 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. Predetermined Overhead Rate Job P $ 17,000 $ 24,200 9. What are the company's predetermined overhead rates in the Molding Department and the Fabrication Department? Note: Round your answers to 2 decimal places. $7.440 00 2,100 1,000 3,100 per MH por MH Job Q $10,000 $ 9,100 1,200 1,300 2,500
Transcribed Image Text:THE URELLE CUS, UNELLI LUS, du marcurs use to our aiu ware as IUROWS. Direct materials Direct labor cost Actual machine-hours used: Holding Fabrication Total Molding Department Fabrication Department Answer is not complete. 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. Predetermined Overhead Rate Job P $ 17,000 $ 24,200 9. What are the company's predetermined overhead rates in the Molding Department and the Fabrication Department? Note: Round your answers to 2 decimal places. $7.440 00 2,100 1,000 3,100 per MH por MH Job Q $10,000 $ 9,100 1,200 1,300 2,500
Expert Solution
steps

Step by step

Solved in 4 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Property, Plant and Equipment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS