| 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 the March and Job Q was incomplete at the end of the 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):
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| Job P | Job Q | |||
| Direct materials | $ | 19,500 | $ | 9,000 |
| Direct labor cost | $ | 31,500 | $ | 7,500 |
| Actual direct labor-hours worked | 2,100 | 500 | ||
| A. | If Job P includes 30 units, what is its unit product cost? |
Unit Product Cost $_____________
- What is the amount of manufacturing cost assigned to Job Q as of the end ofMarch (including applied overhead)?
Total manufacturing cost $________
A
Here we have been provided that, The company uses a plantwide predetermined overhead rate based on direct labor-hours
Predetermined OH Rate
= Estimated Fixed OH / (Estimated Direct Labor hours + Variable OH Rate per hour)
Now we put the figures in to the formulla as under
=15000 /3000 +2
=$ 7 per DLH
Job P includes 30 units, what is its unit product cost?
| P | |
| Direct Material | 19500 |
| Direct labour | 31500 |
| Overhead 2100*7 |
14700 |
| 65700 | |
Unit Product Cost $
=65700 /30
=2190
Answer:
Unit Product Cost $ =2190
B
Direct Materials — 9,000
Direct Labor Cost — 7500
Overhead — …………3500
Total Costs = 20,000
Total Cost assigned to Job Q is 20,000
