10-11
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):
Estimated total machine-hours used
Estimated total fixed manufacturing overhead
Estimated variable manufacturing overhead per machine-hour
NET
Direct materials
Direct labor cost
Actual machine-hours used:
Molding
Fabrication
Foundational 2-7
Total price for the job
Selling price per unit
UL
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
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 departmental predetermined overhead rates with
machine-hours as the allocation base in both departments.
S
Job P
7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish
selling prices for all of Its Jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices
for both Jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do
not round Intermediate calculations. Round your final answers to nearest whole dollar.)
78.050 S
Job P
Job Q
$28,000 $15.500
$33,000
$13,500
Job Q
2,100
5,300
44,550
2,300
2,408
4,700
Fabrication Total
1,500
4,000
$31,000
$ 17,250
$ 2.90 $ 3.70
Molding
2,500
$13,750