Completion Question:
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):
Molding Fabrication Total
Estimated total machine-hours used 2,500 1,500 4,000
Estimated total fixed manufacturing
overhead $10,000 $15,000 $25,000
Estimated variable manufacturing
overhead per machine-hour $1.40 $2.20
Job P Job Q
Direct materials $13,000 $8,000
Direct labor cost $21,000 $7,500
Actual machine-hours used:
Molding 1,700 800
Fabrication 600 900
Total 2,300 1,700
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Answer:
Sweeten Company
Total manufacturing costs:
Job P Job Q
Direct materials $13,000 $8,000
Direct labor cost $21,000 $7,500
Variable overhead cost $3,220 $3,740
Fixed overhead costs $10,000 $15,000
Total manufacturing costs $47,220 $34,240
Markup (80%) $37,776 $27,392
Estimated Selling Price $84,996 $61,632
Explanation:
a) Data and Calculations:
Molding Fabrication Total
Estimated total machine-hours used 2,500 1,500 4,000
Estimated total fixed manufacturing
overhead $10,000 $15,000 $25,000
Estimated variable manufacturing
overhead per machine-hour $1.40 $2.20
Job P Job Q
Direct materials $13,000 $8,000
Direct labor cost $21,000 $7,500
Actual machine-hours used:
Molding 1,700 800
Fabrication 600 900
Total 2,300 1,700
Estimated variable
manufacturing overhead
machine-hour $1.40 $2.20
Variable Manufacturing
overhead cost $3,220 $3,740
Based on the costs and the markup percentage, the selling price of Job P would be $4,545 and for Job Q would be $1,848.
Molding department:
= Variable overhead cost per hour + (Estimated overhead / Estimated machine hours used)
= 1.40 + (10,000 / 2,500)
= $5.40
Fabrication Department:
= 2.20 + (15,000 / 1,500)
= $12.20
= (Molding department hours x Overhead rate) + (Fabrication department hours x Overhead rate)
= (1,700 x 5.40) + (600 x 12.20)
= $16,500
= (800 x 5.40) + (900 x 12.20)
= $15,300
= ((1 + markup percentage) x (Direct materials + Direct labor + Manufacturing overhead) ) / Number of Job Q units
= ( ( 1 + 80%) x (13,000 + 21,000 + 16,500)) / 20
= $4,545
= ( ( 1 + 80%) x (8,000 + 7,500 + 15,300) ) / 30
= $1,848
In conclusion, the selling prices are $4,545 and $1,848 respectively.
Find out more on marking up prices at https://brainly.com/question/16710746.
