Completion Question:
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.
Answer:
Sweeten Company
Total manufacturing costs:
Job P Job Q
Direct materials $13,000 $8,000
Direct labor cost $21,000 $7,500
Variable overhead cost $3,220 $3,740
Fixed overhead costs $10,000 $15,000
Total manufacturing costs $47,220 $34,240
Markup (80%) $37,776 $27,392
Estimated Selling Price $84,996 $61,632
Explanation:
a) Data and Calculations:
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
Estimated variable
manufacturing overhead
machine-hour $1.40 $2.20
Variable Manufacturing
overhead cost $3,220 $3,740
