unction Company to just prices on the wymy vi une your and in veyanmy mivene, 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: Estimated total machine-hours used Molding Fabrication 2,500 1,500 4,000 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 12,250 $ 2.30 $ 16,350 $ 28,600 $ 3.10 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job Q $ 12,500 $ 11,100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Job P $ 22,000 $ 28,200 2,600 1,500 4,100 1,700 1,800 3,500 Total 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Foundational 15 - Chapter Two i
Part 3 of 15
3
oints
C
eBook
References
II
Print
aw
Dashboard
ChatGPT: Optimizing Language Models for Dialogue
ezto.mheducation.com
UNCOLCH Cumpany has jus 111 piyices at the veying vile you and the wymy line. It
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.
Direct materials
Direct labor cost
Actual machine-hours used:
Molding
Fabrication
Total
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 Total
2,500
1,500
4,000
Estimated total fixed manufacturing overhead
$28,600
Estimated variable manufacturing overhead per machine-hour
$ 12,250
$ 2.30
$ 16,350
$ 3.10
The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:
Total manufacturing cost
Saved
Job P
$ 22,000
$ 28,200
< Prev
2,600
1,500
4,100
Job Q
$ 12,500
$ 11,100
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.
1,700
1,800
3,500
3. What is the total manufacturing cost assigned to Job P? (Do not round intermediate calculations. Round your final answer to
nearest whole dollar.)
Comparing Themes, Videos
3 4 5
***
15
of 15
#
Next >
M Question 3- Foundational 15- Chap
Help
Save & Exit
Submit
Check my work
Transcribed Image Text:Foundational 15 - Chapter Two i Part 3 of 15 3 oints C eBook References II Print aw Dashboard ChatGPT: Optimizing Language Models for Dialogue ezto.mheducation.com UNCOLCH Cumpany has jus 111 piyices at the veying vile you and the wymy line. It 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. Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 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 Total 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $28,600 Estimated variable manufacturing overhead per machine-hour $ 12,250 $ 2.30 $ 16,350 $ 3.10 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Total manufacturing cost Saved Job P $ 22,000 $ 28,200 < Prev 2,600 1,500 4,100 Job Q $ 12,500 $ 11,100 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. 1,700 1,800 3,500 3. What is the total manufacturing cost assigned to Job P? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Comparing Themes, Videos 3 4 5 *** 15 of 15 # Next > M Question 3- Foundational 15- Chap Help Save & Exit Submit Check my work
Expert Solution
Step 1

Solution 3:

Predetermined overhead rate = Estimated total overhead / Estimated machine hours

Manufacturing overhead applied = Actual machine hours * Overhead rate per machine hour

Manufacturing cost assigned to Jobs = Direct materials + Direct labor + Overhead applied

 

steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
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