Required informationSkip to question[The following information applies to the questions displayed below.] 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 TotalEstimated 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 Job P Job QDirect 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 underapplied or overapplied manufacturing overhead costs during the month. Required:For questions 1-9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10-15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base.2. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?
Question
Required informationSkip to question[The following information applies to the questions displayed below.] 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 TotalEstimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead 15,150 1.50 14,000 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 underapplied or overapplied manufacturing overhead costs during the month. Required:For questions 1-9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10-15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base.2. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?
Solution
To calculate the manufacturing overhead applied from the Molding Department to Job P and Job Q, we first need to determine the predetermined overhead rate for the Molding Department.
The predetermined overhead rate is calculated by dividing the total estimated overhead by the total estimated machine hours.
For the Molding Department, the total estimated overhead is $10,250 (fixed manufacturing overhead) and the total estimated machine hours are 2,500.
So, the predetermined overhead rate for the Molding Department is 4.10 per machine hour.
Next, we multiply the predetermined overhead rate by the actual machine hours used for each job to find the applied overhead.
For Job P, the Molding Department used 1,800 machine hours. So, the applied overhead for Job P is 7,380.
For Job Q, the Molding Department used 900 machine hours. So, the applied overhead for Job Q is 3,690.
So, the manufacturing overhead applied from the Molding Department to Job P was 3,690.
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