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(23007.95)&(17007.95)	18285	13515	31800
Since per hour plantwide overhead is $ 7.95

Deparmental wide predetermined	Job P	Job Q	Total $
Moulding(135001700/2500) & (13500800/2500)	9180	4320	13500
Fabrication(18300600/1500)&(18300900/1500)	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 1 year ago

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