9,10 ch. 2

15 ed ences Required Information The Foundational 15 (Algo) [LO2-1, LO2-2, LO2-3, LO2-4] [The following information applies to the questions displayed below.] 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 $30,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.10 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. Molding Fabrication 2,500 1,500 Estimated total fixed manufacturing overhead $ 13,500 $ 2.80 $ 17,100 $ 3.60 Estimated variable manufacturing overhead per machine-hour 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 Molding Department Fabrication Department Job P $ 27,000 $ 32,200 Predetermined Overhead 3,100 2,000 5,100 Rate Job Q $ 15,000 $ 13,100 Total Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. per MH per MH 2,200 2,300 4,500 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. Total Foundational 2-9 (Algo) 9. What are the company's predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.) 4,000 $ 30,600 Information The Foundational 15 (Algo) [LO2-1, LO2-2, LO2-3, LO2-4] [The following information applies to the questions displayed below.] 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 $30,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.10 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 Molding 2,500 Fabrication 1,500 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 13,500 $ 2.80 $ 17,100 $ 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 $ 32,200 Manufacturing overhead applied 3/100 2,000 5,100 Job P Job Q $ 15,000 $ 13,100 Job Q 2,200 2,300 4,500 Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year. Total 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. 4,000 $ 30,600 Foundational 2-10 (Algo) 10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round Intermediate calculations.)