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 $ 13,250 $ 16,950 $ 30,200 Estimated variable manufacturing overhead per machine-hour $ 2.70 $ 3.50 Job P Job Q

Direct materials $ 26,000 $ 14,500 Direct labor cost $ 31,400 $ 12,700 Actual machine-hours used: Molding 3,000 2,100 Fabrication 1,900 2,200 Total 4,900 4,300 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

	Molding	Fabrication	Total
Estimated total fixed manufacturing overhead	$13,250	$16,950	$30,200
Estimated total variable manufacturing overhead	$6,750	$5,250	$12,000
(2,500 x 2.7), (1,500 x 3.5)
Estimated total manufacturing overhead	$20,000	$22,200	$42,200
Estimated total machine-hours	2,500	1,400	3,900
Plantwide predetermined overhead rate			$10.82