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Required information [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 $26,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.10 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 Holding 2,500 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 11,000 $ 1.80 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: Holdine Job P $ 17,000 $ 24,200 2.100 Job 0 $ 10,000 $9,100 1.200 Fabrication 1,500 $ 15,600 $ 2.60 Total 4,000 $ 26,600

Required information [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 $26,600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.10 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 Holding 2,500 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 11,000 $ 1.80 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: Holdine Job P $ 17,000 $ 24,200 2.100 Job 0 $ 10,000 $9,100 1.200 Fabrication 1,500 $ 15,600 $ 2.60 Total 4,000 $ 26,600

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 3PA: Pocono Cement Forms expects $900,000 in overhead during the next year. It does not know whether it...
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Required information [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 $26.600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.10 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 i Holding Fabrication 2,500 1,500 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 11,000 $ 1.80 $ 15,600 $ 2.60 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 Job P $ 17,000 $ 24,200 2.100 Job 0 $ 10,000 $9,100 1.200 Total 4,000 $ 26,600
Transcribed Image Text:Required information [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 $26.600 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.10 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 i Holding Fabrication 2,500 1,500 Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour $ 11,000 $ 1.80 $ 15,600 $ 2.60 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 Job P $ 17,000 $ 24,200 2.100 Job 0 $ 10,000 $9,100 1.200 Total 4,000 $ 26,600
THE URELLE CUS, UNELLI LUS, du marcurs use to our aiu ware as IUROWS. Direct materials Direct labor cost Actual machine-hours used: Holding Fabrication Total Molding Department Fabrication Department Answer is not complete. 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. Predetermined Overhead Rate Job P $ 17,000 $ 24,200 9. What are the company's predetermined overhead rates in the Molding Department and the Fabrication Department? Note: Round your answers to 2 decimal places. $7.440 00 2,100 1,000 3,100 per MH por MH Job Q $10,000 $ 9,100 1,200 1,300 2,500
Transcribed Image Text:THE URELLE CUS, UNELLI LUS, du marcurs use to our aiu ware as IUROWS. Direct materials Direct labor cost Actual machine-hours used: Holding Fabrication Total Molding Department Fabrication Department Answer is not complete. 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. Predetermined Overhead Rate Job P $ 17,000 $ 24,200 9. What are the company's predetermined overhead rates in the Molding Department and the Fabrication Department? Note: Round your answers to 2 decimal places. $7.440 00 2,100 1,000 3,100 per MH por MH Job Q $10,000 $ 9,100 1,200 1,300 2,500
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