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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
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:
| Molding | Fabrication | Total | |
|---|---|---|---|
| Estimated total machine-hours used | 2,500 | 1,500 | 4,000 |
| Estimated total fixed manufacturing overhead | $ 10,250 | $ 15,150 | $ 25,400 |
| Estimated variable manufacturing overhead per machine-hour | $ 1.50 | $ 2.30 |
The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:
| Job P | Job Q | |
|---|---|---|
| Direct materials | $ 14,000 | $ 8,500 |
| Direct labor cost | $ 21,800 | $ 7,900 |
| Actual machine-hours used: | ||
| Molding | 1,800 | 900 |
| Fabrication | 700 | 1,000 |
| Total | 2,500 | 1,900 |
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.
Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar.
1. What is the company’s plantwide predetermined overhead rate?
2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q?
3. What is the total
4. If Job P includes 20 units, what is its unit product cost?
5. What is the total manufacturing cost assigned to Job Q?
6. If Job Q includes 30 units, what is its unit product cost?
7. Assume that Sweeten Company uses cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. If Job P includes 20 units and Job Q includes 30 units, what selling price would the company establish for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis?
8. What is Sweeten Company’s cost of goods sold for the year?
9. What are the company’s predetermined overhead rates in the Molding Department and the Fabrication Department?
10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?
11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?
12. If Job P includes 20 units, what is its unit product cost?
13. If Job Q includes 30 units, what is its unit product cost?
14. Assume that Sweeten Company uses cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. If Job P includes 20 units and Job Q includes 30 units, what selling price would the company establish for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis?
15. What is Sweeten Company’s cost of goods sold for the year?
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7. Assume that Sweeten Company uses cost-plus pricing (and a markup percentage of 80% of total
8. What is Sweeten Company’s cost of goods sold for the year?
9. What are the company’s predetermined
10. How much manufacturing
11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?
12. If Job P includes 20 units, what is its unit product cost?
13. If Job Q includes 30 units, what is its unit product cost?
14. Assume that Sweeten Company uses cost-plus pricing (and a markup percentage of 80% of total
15. What is Sweeten Company’s cost of goods sold for the year?
4. If Job P includes 20 units, what is its unit product cost?
5. What is the total
6. If Job Q includes 30 units, what is its unit product cost?
7. Assume that Sweeten Company uses cost-plus pricing (and a markup percentage of 80% of total
8. What is Sweeten Company’s cost of goods sold for the year?
9. What are the company’s predetermined
10. How much manufacturing
11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?
12. If Job P includes 20 units, what is its unit product cost?
13. If Job Q includes 30 units, what is its unit product cost?
14. Assume that Sweeten Company uses cost-plus pricing (and a markup percentage of 80% of total
15. What is Sweeten Company’s cost of goods sold for the year?
4. If Job P includes 20 units, what is its unit product cost?
5. What is the total
6. If Job Q includes 30 units, what is its unit product cost?
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