Problem
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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Estimated total fixed manufacturing overhead
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14,000
|
|
Estimated variable manufacturing overhead per direct labor-hour
|
1.40
|
|
Estimated total direct labor-hours to be worked
|
3,500
|
|
Total actual manufacturing overhead costs incurred
|
19,000
|
|
Job P
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Job Q
|
|
Direct materials
|
$
|
15,000
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$
|
9,500
|
|
Direct labor cost
|
$
|
52,000
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$
|
15,000
|
|
Actual direct labor-hours worked
|
|
2,600
|
|
750
|
Required:
1. What is the company's predetermined overhead rate?
2. How much manufacturing overhead was applied to Job P and Job Q?
3. What is the direct labor hourly wage rate?