Question

In: Accounting

How much manufacturing overhead was applied to Job P and how much was applied to Job Q?

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 overhead $ 10,000 $ 15,000 $ 25,000 Estimated variable manufacturing overhead per machine-hour $ 1.40 $ 2.20 Job P Job Q Direct materials $ 13,000 $ 8,000 Direct labor cost $ 21,000 $ 7,500 Actual machine-hours used: Molding 1,700 800 Fabrication 600 900 Total 2,300 1,700 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

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 departmental predetermined overhead rates with machine-hours as the allocation base in both departments.

2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

Solutions

Expert Solution

Job P Job Q Total $
Direct Material $ 13000 8000 21000
Direct Labour $ 21000 7500 28500
Actual Machine Hours used
Plant wide predetermined mfg. Overhead
Moulding 1700 800 2500
Fabrication 600 900 1500
Total Hours 2300 1700 4000
Plant wide pre determined(2300*7.95)&(1700*7.95) 18285 13515 31800
Since per hour plantwide overhead is $ 7.95
Deparmental wide predetermined Job P Job Q Total $
Moulding(13500*1700/2500) & (13500*800/2500) 9180 4320 13500
Fabrication(18300*600/1500)&(18300*900/1500) 7320 10980 18300
16500 15300 31800

workig:

Company as Whole Molding Fabrication Total
Est. total machine Hours 2500 1500 4000
Fixed Mfg. OH $ 10000 15000 25000
Est. Variable Mfg. OH per Machine Hours $ 1.4 2.2
Est. Variable Mfg. OH $ 3500 3300 6800
13500 18300 31800
Per hour OH $ 5.4 12.2 7.95

ekkarill92 answered 3 years ago
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