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 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 $29,400 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.80 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 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding 2,500 $ 12,750 $ 2.50 Fabrication 1,500 Total 4,000 $ 16,650 $ 3.30 $ 29,400 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Job P $ 24,000 $ 29,800 Job Q $ 13,500 $ 11,900 2,800 1,900 1,700 4,500 2,000 3,900 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. Foundational 2-5 (Algo) 5. What is the total manufacturing cost assigned to Job Q? Note: Do not round intermediate calculations.
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 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 $29,400 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.80 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 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding 2,500 $ 12,750 $ 2.50 Fabrication 1,500 Total 4,000 $ 16,650 $ 3.30 $ 29,400 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Job P $ 24,000 $ 29,800 Job Q $ 13,500 $ 11,900 2,800 1,900 1,700 4,500 2,000 3,900 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. Foundational 2-5 (Algo) 5. What is the total manufacturing cost assigned to Job Q? Note: Do not round intermediate calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Gadubhai
Transcribed Image Text: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
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 $29,400 of fixed manufacturing overhead
cost for the coming period and variable manufacturing overhead of $2.80 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
Estimated total fixed manufacturing overhead
Estimated variable manufacturing overhead per machine-hour
Molding
2,500
$ 12,750
$ 2.50
Fabrication
1,500
Total
4,000
$ 16,650
$ 3.30
$ 29,400
The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:
Direct materials
Direct labor cost
Actual machine-hours used:
Molding
Fabrication
Job P
$ 24,000
$ 29,800
Job Q
$ 13,500
$ 11,900
2,800
1,900
1,700
4,500
2,000
3,900
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.
Foundational 2-5 (Algo)
5. What is the total manufacturing cost assigned to Job Q?
Note: Do not round intermediate calculations.
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