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 2 years ago
Next > < Previous

Related Solutions

how to calculate the overhead cost applied to a job in accounting
how to calculate the overhead cost applied to a job in accounting
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $51,700 and its total manufacturing overhead cost to be $98,230. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 2. Fill in the missing values in...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $54,800 and its total manufacturing overhead cost to be $98,640. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 1. Calculate the predetermined overhead rate. 2....
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on...
Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $50,300 and its total manufacturing overhead cost to be $90,540.      Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow:             Required: 1. Calculate the predetermined overhead rate.                  2. Fill in...
Even though a job is not completed at year end, manufacturing overhead cost may be applied...
Even though a job is not completed at year end, manufacturing overhead cost may be applied to that job when a predetermined overhead rate is used. True False
Curtis Inc. uses a job order costing system. Manufacturing overhead is applied on the basis of...
Curtis Inc. uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $60,680 for the year; direct labor was estimated to total $151,700. Raw Materials Inventory (1/1) $ 10,700 (12/31) $ 13,700 Work in Process Inventory (1/1) $ 23,900 (12/31) $ 18,500 Finished Goods Inventory (1/1) $ 34,100 (12/31) $ 40,000 The following transactions have occurred during the year. Raw materials purchases $ 107,000 Direct materials...
Cadburn Corp. uses a job order costing system with manufacturing overhead applied to products on the...
Cadburn Corp. uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours. For the upcoming year, Cadburn Corp. estimated total manufacturing overhead cost at $250,000 and total direct labor hours of 50,000. During the year actual manufacturing overhead incurred was $262,500 and 51,000 direct labor hours were used. a. Calculate the predetermined overhead rate. b. Calculate how much manufacturing overhead will be applied to production. c. Is overhead over- or underapplied?...
Ecola Company uses a job order costing system. Manufacturing overhead is applied on the basis of...
Ecola Company uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $142,560 for the year; direct labor was estimated to total $162,000. (1/1) (12/31) Raw Materials Inventory $ 13,800 $ 10,800 Work in Process Inventory $ 29,800 $ 22,800 Finished Goods Inventory $ 41,800 $ 32,800 The following transactions have occurred during the year. Raw materials purchases $ 138,000 Direct materials used $ 75,600 Direct...
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on...
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $172,040. Estimated direct labor cost was $456,280 for 18,700 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,870 hours) $ 45,629 Indirect costs Indirect labor 2,520 Indirect materials 3,380 Factory rent 3,340 Factory supervision 4,730 Factory...
Deer Lake Inc. uses a job order costing system with manufacturing overhead applied to products at...
Deer Lake Inc. uses a job order costing system with manufacturing overhead applied to products at a rate of 150% of direct labor cost. Treating each case independently, find the missing amounts (Input all amounts as positive values.): Case 1 Case 2 Case 3 Direct materials used $20,600 $10,000 Direct labor $26,800 Manufacturing overhead applied $44,100 Total manufacturing costs $97,000 $30,000 Beginning Work in Process $10,300 $7,200 Ending Work in process $7,600 $9,500 Cost of goods manufactured $94,400 $34,100 Beginning...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT