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.

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 departmental predetermined overhead rates with machine-hours as the allocation base in both departments.
1. What was the company’s plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)

Answer 1

Ans:

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