Answer:
Sweeten Company
1. Jobs during March Job P Job Q
Direct materials $21,000 $12,000
Direct labor cost $27,400 $10,700
Overhead cost = $37,245 $31,515
Total manufacturing
costs $85,645 $54,215
Markup (80%) 68,516 43,372
Total Selling price $154,161 $97,587
Units produced 20 30
Unit selling price $7,798.05 $3252.90
Workings:
M. Overhead rate $9.55 $9.55
Total machine hours 3,900 3,300
Overhead cost = $37,245 $31,515
2. Cost of goods sold for March = $139,860 ($85,645 + $54,215)
3. Company's predetermined overhead rates:
Molding Department $7.00 Fabrication Department $13.80
4. Manufacturing Overhead applied:
Job P Job Q Overhead Rate
Molding 2,500 1,600 $7.00
Overhead
applied $17,500 $11,200
5. Overhead applied
Job P Job Q Overhead Rate
Fabrication 1,400 1,700 $13.80
Overhead
applied $19,320 $23,460
Job P Job Q
Direct materials $21,000 $12,000
Direct labor cost $27,400 $10,700
Overhead applied $19,320 $23,460
Total cost $67,720 $46,160
Units produced 20 30
Unit cost $3,386 $1,538.67
6. Unit cost of P = $3,386
7. Unit cost of Q = $1,538.67
8. Job P Job Q
Total cost $67,720 $46,160
Mark-up (80%) 54,176 36,928
Total Selling price $121,896 $83,088
Unit Selling price $6,094.80 $2,769.60
9. Cost of goods sold for March = $113,880 ($67,720 + $46,160)
Explanation:
Departments:
Molding Fabrication Total
Estimated total machine-hours used 2,500 1,500 4,000
Estimated total manufacturing overhead
Fixed $12,000 $16,200 $28,200
Variable per machine-hour $2.20 $3.00
Variable manufacturing overhead $5,500 $4,500 $10,000
Estimated total manufacturing overhead $17,500 $20,700 $38,200
Predetermined overhead rate =
Estimated total manufacturing overhead / estimated total machine hours used $7.00 $13.80 $9.55
Jobs during March Job P Job Q
Direct materials $21,000 $12,000
Direct labor cost $27,400 $10,700
Actual machine-hours used:
Molding 2,500 1,600
Fabrication 1,400 1,700
Total 3,900 3,300
