Estimated total machine-hours used
Estimated total fixed manufacturing overhead
Estimated variable manufacturing overhead per machine-hour
Molding
Fabrication
Total
2,500
1,500
4,000
$ 13,500
$ 17,100
$ 30,600
$ 2.80
$ 3.60
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
Total
Job P
$ 27,000
Job Q
$ 15,000
$ 32,200
$ 13,100
3,100
2,200
2,000
2,300
5,100
4,500
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 2-14 (Algo)
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? (Do not round intermediate calculations.
Round your final answers to nearest whole dollar.)
