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 predetermine 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 $28,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.60 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 Molding Fabrication 2,500 1,500 Estimated total fixed manufacturing overhead $ 12,250 $ 16,350 $ 2.30 $ 3.10 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: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $ 22,000 $ 28,200 2,600 1,500 4,100 Job Q $ 12,500 $ 11,100 Total 1,700 1,800 3,500 4,000 $28,600
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 predetermine 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 $28,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.60 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 Molding Fabrication 2,500 1,500 Estimated total fixed manufacturing overhead $ 12,250 $ 16,350 $ 2.30 $ 3.10 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: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $ 22,000 $ 28,200 2,600 1,500 4,100 Job Q $ 12,500 $ 11,100 Total 1,700 1,800 3,500 4,000 $28,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:www
Foundational 15 - Chapter Two i
Part 9 of 15
9
1
points
eBook
Mc
Graw
Hill
10
References
Print
Molding
Fabrication
Molding Department
Fabrication Department
FEB
10
Predetermined Overhead
Rate
Total
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.
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per MH
per MH
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9. What are the company's predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your
answers to 2 decimal places.)
9 10
Monday, March 6
2,600
1,500
4,100
S
11
1,700
1,800
3,500
***
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15 of 15 ⠀
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Writing Assignment #3 (3 questions)
Text page 135: #16, Chapter 4 (12 pts.) AND
SOD
A
Transcribed Image Text:tional 15 Chapter Two
15
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 $28,600 of fixed manufacturing
overhead cost for the coming period and variable manufacturing overhead of $2.60 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:
Molding
Fabrication
Estimated total machine-hours used
Estimated total fixed manufacturing overhead
Molding Fabrication
2,500
1,500
$ 12,250 $ 16,350
$ 2.30
$ 3.10
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:
Total
Saved
FER
10
< Prev
9 10
Monday, March 6
Job P
$ 22,000
$ 28,200
2,600
1,500
4,100
S
11
Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.
Required:
***
Job Q
$ 12,500
$ 11,100
1,700
1,800
3,500
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15 of 15
‒‒‒
Next >
Total
4,000
$ 28,600
Writing Assignment #3 (3 questions)
Text page 135: #16, Chapter 4 (12 pts.) AND
ONTD
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