Reference no: EM132999280

A company had no jobs in progress at the beginning of the month and no beginning inventories. The company has two manufacturing departments. It started, completed, and sold only two jobs during the month -Job A and Job B.

The following additional information is available (all data and questions relate to the current month):

                                                                                                      Department 1               Department              Total
Estimated total machine-hours used                                         2,500                   1,500                    4,000
Estimated total fixed manufacturing overhead                           $14,000                $17,400                 $31,400
Estimated variable manufacturing overhead per machine-hour        $3.00                   $3.80

                                      Job A                  Job B
Direct materials                 $29,000          $16,000
Direct labor cost                $33,800            $13,900

Actual machine-hours used:

Molding                                 3,300                2,400
Fabrication                             2,200                2,500
Total                                      5,500               4,900

The company had no underapplied or overapplied manufacturing overhead costs during the month.

Problem 1. What was the company's plantwide predetermined overhead rate

Problem 2. Using the plantwide rate you just calculated, how much manufacturing overhead was applied to Job A and how much was applied to Job B?

Problem 3. If Job A included 20 units, what was its unit product cost?

Problem 4. How much manufacturing overhead was applied from Department 1 to Job A and how much was applied to Job B?