Question & Answer: Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only tw…..
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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):
| Estimated total fixed manufacturing overhead | $ | 13,600 | |
| Estimated variable manufacturing overhead per direct labor-hour | $ | 1.30 | |
| Estimated total direct labor-hours to be worked | 3,400 | ||
| Total actual manufacturing overhead costs incurred | $ | 18,000 | |
|
|
|||
| Job P | Job Q | |||||
| Direct materials | $ | 18,500 | $ | 9,400 | ||
| Direct labor cost | $ | 47,500 | $ | 13,300 | ||
| Actual direct labor-hours worked | 2,500 | 700 | ||||
Please answer the following based on this information:
1) What is the company’s predetermined overhead rate?
2) How much manufacutirng overhead was applied to Job P and Job Q?
3) What is the direct labor hourly wage rate?
4) If Job P includes 25 units, what is its unit product cost?
5) What is the total amount of manufacturing cost assigned to Job Q as of the end of March (including applied overhead)?
6) What is the amount of underapplied or overapplied overhead?
7) Will your answer to part 6 above increase or decrease unadjusted cost of goods sold?
8) If Sweeten Company requistioned $31,700 from raw materials inventory during March, then how much indirect materials cost would be included in Manufacturing Overhead Incurred?
9) If Sweeten Company’s labor time tickets totaled $66,100 for the month of March, then how much indirect labor cost would be included in Manufacturing Overhead Incurred?
So much stress and so little time? We’ve got you covered. Get your paper proofread, edited or written from scratch within the tight deadline.
