ACG2071 - Chapter 2: Job Costing: Calculating Product Costs

Based on this information, the overhead applied to Job ABC using multiple predetermined overhead rates is $ ________. (Round your answer to two decimal places.) Company Dept. A Dept B. Predetermined overhead rate per direct labor hour $2.10 $2.40 $1.80 Direct labor hours hours worked on Job ABC 40 18 22

$166.8

Which of the following would not be a good allocation base for manufacturing overhead? A. Units of product B. Machine hours C. Accounting hours D. Direct labor hours

C. Accounting hours

Which of the following would not be considered a job in a service firm that uses job-order costing? A. A repair job at an auto repair shop B. A patient in a hospital C. The tax department in an accounting firm D. A client at a law firm

C. The tax department in an accounting firm This is a department; a job would be an individual client

When a predetermined markup is applied to a base to determine the target selling price, the company is using ______-______ pricing. (Enter only one word per blank.)

cost plus

Job XYZ has a total manufacturing cost of $600. If the mark-up percentage is 40%, the job will sell for $ _______. (Enter your answer as a whole number.)

$840

Murphy Manufacturing estimated total manufacturing overhead for the year to be $100,000 and that 5,000 direct-labor hours would be used. Actual overhead was $120,000 and actual direct labor-hours were 7,500. The overhead applied to a job completed during the year that used 200 direct labor-hours was ______. A. $4,000 B. $4,800 C. $3,200 D. $100,000

A. $4,000

The predetermined overhead rate is calculated ______. A. before the period begins B. as soon as actual overhead is known C. as the period progresses D. after the period is over

A. before the period begins

Manufacturing overhead consists of ______. A. many different kinds of indirect costs B. many different kinds of direct costs C. a single kind of direct cost D. a single kind of indirect cost

A. many different kinds of indirect costs

Typical cost drivers include ______. A. machine depreciation B. flight-hours C. machine-hours D. utilities cost D. computer time

B. flight-hours C. machine-hours D. computer time

Based on this information, the predetermined overhead rate per direct labor dollar for Dept. A is ______. Company Dept. A Dept B. Estimated manufacturing overhead $500,000 $338,000 $162,000 Estimated direct labor cost $250,000 $130,000 $120,000 Actual manufacturing overhead $720,000 $400,000 $320,000 Actual direct labor cost $300,000 $160,000 $140,000 A. $2.50 B. $2.00 C. $2.60 D. $2.40

C. $2.60 $338,000 ÷ $130,000 = $2.60

In the formula Y = a + bX, X represents the estimated ______. A. total manufacturing overhead cost B. variable manufacturing cost per unit C. total amount of the allocation base D. total fixed manufacturing overhead cost

C. total amount of the allocation base

True/False: When a company uses cost-plus pricing, they consider both the costs of production and the desired profit.

False Cost-plus pricing applies a predetermined markup to a cost base to determine selling price. Desired profit is not considered.

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $26.00 per direct labor-hour and $22.00 per direct labor-hour, respectively. The company's direct labor wage rate is $28.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials$ 410. $ 53 Direct labor $ 322 $ 70 Required: 1. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate calculations.)

Total manufacturing cost = $ 1,209 Direct labor cost/Direct labor wage rate per hour = Total direct labor hours Direct materials + Direct labor + (Assembly Department + Testing & Packaging Department) = Total manufacturing cost

True/False: One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors.

True For example, if actual rates were used, costs may be higher in summer and winter than in spring or fall due to heating and cooling costs.

Compared to a plantwide overhead rate system, a multiple predetermined overhead rate system is ______ accurate. A. simpler and more B. simpler and less C. more complex and less D. more complex and more

D. more complex and more

The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find ______. A. the total cost of the job B. actual overhead C. the predetermined overhead rate for the job D. overhead applied to the job

D. overhead applied to the job

Based on this information, the predetermined overhead rate per direct labor dollar for Dept. B is $ ________. (Round your answer to 2 decimal places.) Company Dept. A Dept B. Estimated manufacturing overhead $500,000 $338,000 $162,000 Estimated direct labor cost $250,000 $130,000 $120,000 Actual manufacturing overhead $720,000 $400,000 $320,000 Actual direct labor cost $300,000 $160,000 $140,000

$1.35

Company Dept. A Dept B. Predetermined overhead rate per direct labor hour $2.10 $2.40 $1.80 Direct labor hours hours worked on Job ABC 30 17 13 Based on this information, the overhead applied to Job ABC using multiple predetermined overhead rates is: $64.20. $72.00. $54.00. $63.00.

$64.20. $2.40 × 17 + $1.80 × 13 = $64.20

Based on this information, the amount of overhead allocated to a job that used 300 direct labor hours is $________. (Enter your answer as a whole number.) Estimated manufacturing overhead: $450,000 Estimated direct labor hours: 150,000 Actual manufacturing overhead: $405,000 Actual direct labor hours: 180,000

$900 450,000 / 150,000 = 3.00 per direct labor hour X 300 = 900

Smith, Inc. uses a job-order costing system with the predetermined overhead rate of $12 per machine-hour. The job cost sheet for Job #42A listed $12,000 in direct labor cost, $18,000 in direct materials cost, 1,200 direct labor-hours and 1,100 machine-hours. The total cost of Job #42A is $ ________. (Enter your answer as a whole number.) Hint: As direct labor cost is given, direct labor hours has to be ignored.

43,200

The adjustment for overapplied overhead ______ net income. A. increases cost of goods sold and decreases B. decreases both cost of goods sold and C. increases both cost of goods sold and D. decreases cost of goods sold and increases

D. decreases cost of goods sold and increases

Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly wages. Speedy's overhead costs include various items, such as the shop manager's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. The company applies all of its overhead costs to jobs based on direct labor-hours. At the beginning of the year, it made the following estimates: Direct labor-hours required to support estimated output: 50,000 Fixed overhead cost: $ 925,000 Variable overhead cost per direct labor-hour: $ 1.00 The following information was available with respect to his job: Direct materials: $ 619 Direct labor cost: $ 254 Direct labor-hours used: 6 2. During the year, Mr. Wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. Compute Mr. Wilkes' total job cost.

Direct materials = $619 Direct labor = $254 Overhead applied = $117 Total cost assigned to Mr. Wilkes = $990 Overhead applied = Predetermined overhead rate * Direct labor-hours worked Total cost assigned to Mr. Wilkes = DM+DL+Overhead applied

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $26.00 per direct labor-hour and $22.00 per direct labor-hour, respectively. The company's direct labor wage rate is $28.00 per hour. The following information pertains to Job N-60: Assembly Testing & Packaging Direct materials$ 410. $ 53 Direct labor $ 322 $ 70 Required: 2. If Job N-60 consists of 10 units, what is the unit product cost for this job? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Unit product cost = $120.90 Total manufacturing cost/# of units in the job = Unit product cost

Jones Company uses a job-order costing system with a predetermined overhead rate of 120% of direct labor cost. The job cost sheet for Job #420 listed $4,000 in direct materials cost and $5,000 in direct labor cost to manufacture 7,500 units. The unit cost of Job #420 is: A. $2.00 B. $1.20 C. $1.33

A. $2.00 Total cost of Job #420 = Direct materials + direct labor + overhead (predetermined overhead rate × direct labor cost) = $4,000 + $5,000 + 1.20 × $5,000 = $15,000 Unit product cost = $15,000 ÷ 7,500 units = $2.00 per unit.

The unit product cost is the same as the ______. A. average product cost per unit B. total job cost divided by number of units C. incremental unit cost D. cost that would be incurred if another unit were produced

A. average product cost per unit B. total job cost divided by number of units

Manufacturing overhead: A. contains fixed costs. B. is an indirect cost. C. consists of many different types of costs. D. is directly traceable to units produced.

A. contains fixed costs. B. is an indirect cost. C. consists of many different types of costs.

The adjustment for underapplied overhead ______. A. increases cost of goods sold and decreases net operating income B. decreases cost of goods sold and increases net operating income C. decreases both cost of goods sold and net operating income D. increases both cost of goods sold and net operating income

A. increases cost of goods sold and decreases net operating income

In a system that uses multiple predetermined overhead rates, overhead is applied ______. A. at the end of the total production process B. at the end of each period C. in each department as jobs proceed through the department D. before production begins

C. in each department as jobs proceed through the department

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 3. What is the total manufacturing cost assigned to Job P? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Total manufacturing cost = $145,285 Total manufacturing cost = DM+DL+Manufacturing overhead applied

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 6. If Job Q includes 30 units, what is its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Unit product cost = $3,387 Unit product cost = Total manufacturing cost/# of units in the job

Widely used allocation bases in manufacturing include: A. machine hours B. units of product C. direct labor cost D. product revenue E. direct labor hours F. non manufacturing costs

A. machine hours B. units of product C. direct labor cost E. direct labor hours

Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly wages. Speedy's overhead costs include various items, such as the shop manager's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. The company applies all of its overhead costs to jobs based on direct labor-hours. At the beginning of the year, it made the following estimates: Direct labor-hours required to support estimated output: 50,000 Fixed overhead cost: $ 925,000 Variable overhead cost per direct labor-hour: $ 1.00 The following information was available with respect to his job: Direct materials: $ 619 Direct labor cost: $ 254 Direct labor-hours used: 6 3. If Speedy establishes its selling prices using a markup percentage of 60% of its total job cost, then how much would it have charged Mr. Wilkes?

Amount charged to Mr. Wilkes = $1,584 Amount charged to Mr. Wilkes = Total manufacturing cost * (1+Markup percentage)

Jones Company uses a job-order costing system with a predetermined overhead rate of 120% of direct labor cost. The job cost sheet for Job #420 showed that Jones Company spent $4,000 on direct materials and $5,000 on direct labor on the job. What is the total cost of Job #420? A. $11,000 B. $15,000 C. $9,000 D. $10,000

B. $15,000 Direct materials + Direct labor + Predetermined overhead rate × Direct labor cost = $4,000 + $5,000 + 120% × $5,000 = $15,000

Why do companies use a predetermined overhead rate rather than an actual overhead rate? A. An actual overhead rate can never be calculated. B. An actual overhead rate is not known until the end of the period. C. A predetermined overhead rate is easier to use. D. A predetermined overhead rate is more accurate

B. An actual overhead rate is not known until the end of the period.

Which of the following would not be considered a direct labor cost in a service firm that uses job-order costing? A. The salary of a surgeon at a hospital B. The salary of the manager at a hair salon C. The wages of technicians at an auto repair shop D. The salary of an attorney at a law firm

B. The salary of the manager at a hair salon This would be considered overhead.

Cost-plus pricing occurs when ______. A. non-manufacturing costs are added to manufacturing costs B. a markup percentage is added to the cost of a job C. the cost of the job is multiplied by 2

B. a markup percentage is added to the cost of a job

A predetermined overhead rate is calculated by dividing the ______ total manufacturing overhead by the ______ total allocation base. A. actual; estimated B. estimated; estimated C. actual; actual d. estimated; actual

B. estimated; estimated

The unit product cost is the same as the ______. A. incremental unit cost B. total job cost divided by number of units C. cost that would be incurred if another unit were produced D. average product cost per unit

B. total job cost divided by number of units D. average product cost per unit

In the formula Y = a + bX, b represents the estimated ______. A. total amount of the allocation base B. variable manufacturing overhead cost per unit C. total manufacturing overhead cost D. total fixed manufacturing overhead cost

B. variable manufacturing overhead cost per unit

Why is the unit product cost different from the cost that would be incurred if another (additional) unit were produced? A. There would be no additional cost to produce another unit. B. The predetermined overhead rate changes with each unit produced. C. The unit product cost is an average, not an incremental cost. D. The cost that would be incurred if another unit were produced cannot be calculated.

C. The unit product cost is an average, not an incremental cost.

A factor that causes overhead costs is called a ______. A. manufacturing cost B. cost object C. cost driver D. predetermined overhead rate

C. cost driver

To calculate the unit product cost using the job cost sheet ______ by the number of units produced. A. add direct labor to direct materials and divide B. add direct labor to manufacturing overhead and divide C. divide the total job cost D. multiply the total job cost

C. divide the total job cost

The formula for applying overhead to a specific job is ______. A. estimated manufacturing overhead × amount of allocation base incurred by job B. estimated manufacturing overhead ÷ amount of allocation base incurred by job C. predetermined overhead rate × amount of allocation base incurred by job D. estimated manufacturing overhead ÷ estimated allocation base

C. predetermined overhead rate × amount of allocation base incurred by job

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 15. What is Sweeten Company's cost of goods sold for the year? (Do not round intermediate calculations.)

Cost of goods sold = $ 253,700 Cost of goods sold = Total manufacturing cost assigned to Job P + Total manufacturing cost assigned to Job Q

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 8. What is Sweeten Company's cost of goods sold for the year? (Do not round intermediate calculations.)

Cost of goods sold = $246,900 Cost of goods sold = Total manufacturing cost assigned to Job P + Total manufacturing cost assigned to Job Q

Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 82,500 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $866,250 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm's actual overhead cost for the year was $883,550 and its actual total direct labor was 90,450 hours. Required: 2. During the year, Tech Solutions started and completed the Xavier Company engagement. Compute the total job cost for the Xavier Company engagement.

Direct materials = $38,850 Direct labor = $28,800 Overhead applied = $3,630 Total manufacturing cost = $71,280 Overhead applied = Predetermined overhead rate * Direct labor-hours worked

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

Manufacturing overhead applied to Job P = $ 42,120 Manufacturing overhead applied to Job Q = $ 46,980 Manufacturing overhead applied = Machine-hours worked on job * Fabrication overhead rate

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

Manufacturing overhead applied to Job P = $34,780 Manufacturing overhead applied to Job Q = $26,320 Manufacturing overhead applied = Machine-hours worked on job * Molding overhead rate

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

Manufacturing overhead applied to Job P = $75,285 Manufacturing overhead applied to Job Q = $68,115 Manufacturing overhead applied = Actual machine-hours worked * Manufacturing overhead applied

Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 82,500 direct labor-hours would be required for the period's estimated level of client service. The company also estimated $866,250 of fixed overhead cost for the coming period and variable overhead of $0.50 per direct labor-hour. The firm's actual overhead cost for the year was $883,550 and its actual total direct labor was 90,450 hours. The following information was available with respect to this job: Direct materials: $ 38,850 Direct labor cost: $ 28,800 Direct labor-hours worked: 330 Required: 1. Compute the predetermined overhead rate. Compute the total job cost for the Xavier Company engagement.

Predetermined overhead rate = $11.00 per DLH Predetermined overhead rate = [Estimated fixed overhead cost + (variable overhead per direct labor-hour * Estimated direct labor-hours)]/Estimated total direct labor-hours

Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly wages. Speedy's overhead costs include various items, such as the shop manager's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. The company applies all of its overhead costs to jobs based on direct labor-hours. At the beginning of the year, it made the following estimates: Direct labor-hours required to support estimated output: 50,000 Fixed overhead cost: $ 925,000 Variable overhead cost per direct labor-hour: $ 1.00 The following information was available with respect to his job: Direct materials: $ 619 Direct labor cost: $ 254 Direct labor-hours used: 6 1. Compute the predetermined overhead rate.

Predetermined overhead rate = $19.50 per DLH Predetermined overhead rate = [Estimated fixed overhead cost + (variable overhead per direct labor-hour * Estimated direct labor-hours)]/Estimated total direct labor-hours

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 1. What is the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)

Predetermined overhead rate = 11.95 per MH Using the equation Y = a + bX, the estimated total manufacturing overhead cost is computed as follows:Y = $33,000 + ($3.70 per MH)(4,000 MHs) Estimated fixed manufacturing overhead$ 33,000Estimated variable manufacturing overhead:$3.70 per MH × 4,000 MHs14,800Estimated total manufacturing overhead cost$ 47,800 The plantwide predetermined overhead rate is computed as follows: Estimated total manufacturing overhead (a)$ 47,800 Estimated total machine-hours (MHs) (b)4,000MHsPredetermined overhead rate (a) ÷ (b)$ 11.95per MH

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 9. What are the company's predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.)

Predetermined overhead rate of Molding Department = $9.40 per MH Predetermined overhead rate of Fabrication Department = $16.20 per MH Predetermined overhead rate = [Estimated fixed manufacturing overhead + (Estimated variable manufacturing overhead per machine-hour * Estimated total machine-hours used)]/Estimated total machine-hours (MHs)

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 5. What is the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.)

Total manufacturing cost = $101,615 Total manufacturing cost = DM+DL+Manufacturing overhead applied

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 7. Assume that Sweeten Company uses cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. If Job P includes 20 units and Job Q includes 30 units, what selling price would the company establish for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

Total price for Job P = $261,513 Total price for Job Q = $ 182,907 Selling price per unit for Job P = $13,076 Selling price per unit for Job Q = $6,097 Total price for job = Total manufacturing cost + [Total manufacturing cost*(Markup percentage)] Selling price per unit = Total price for job/# of units in the job

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 14. Assume that Sweeten Company uses cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. If Job P includes 20 units and Job Q includes 30 units, what selling price would the company establish for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

Total price for Job P = $264,420 Total price for Job Q = $192,240 Selling price per unit for Job P = $13,221 Selling price per unit for Job P = $6,408 Total price for job = Total manufacturing cost + [Total manufacturing cost*(Markup percentage)] Selling price per unit = Total price for job/# of units in the job

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 13. If Job Q includes 30 units, what is its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Unit product cost = $ 3,560 Unit production cost = (DM+DL+Manufacturing overhead applied)/# of units in the job

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 4. If Job P includes 20 units, what is its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Unit product cost = $7,264 Unit product cost = Total manufacturing cost/# of units in the job

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 $33,000 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $3.70 per machine-hour. Because Sweeten has two manufacturing departments—Molding and Fabrication—it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine-hours. The company gathered the following additional information to enable calculating departmental overhead rates: MoldingFabricationTotalEstimated total machine-hours used2,5001,5004,000Estimated total fixed manufacturing overhead$ 15,000$ 18,000$ 33,000Estimated variable manufacturing overhead per machine-hour$ 3.40$ 4.20 The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job PJob QDirect materials$ 33,000$ 18,000Direct labor cost$ 37,000$ 15,500Actual machine-hours used: Molding3,7002,800Fabrication2,6002,900Total6,3005,700 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. 12. If Job P includes 20 units, what is its unit product cost? (Do not round intermediate calculations.)

Unit production cost = $ 7,345 Unit production cost = (DM+DL+Manufacturing overhead applied)/# of units in the job