Required information (The following information applies to the questions display

Question

Required information (The following information applies to the questions displayed below Sweeten Company had no jobs in progress at the beginning of March and no beginning inventorles. The company has two manufacturing depart -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): olding and Fabrication. It started, completed, and sold only two jobs during March Molding Fabrie Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour 2, 500 1,500 4,000 $10,000 $15,000 $25,000 s1.402.20 Job Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total $13,000 $8,000 $21,000 $7,500 1,700 800 900 200 2,300 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 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. uses a plantwide predetermined overhead rate with machine-hours 1. What was the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places) per MH

Explanation / Answer

Total variable manufacturing overhead = (2,500 machine hours * $1.40 per machine hour) + (1,500 machine hours * $2.20 per machine hour)

= $6,800

Total overhead = Total variable manufacturing overhead + Total fixed manufacturing overhead

= $6,800 + $25,000

= $31,800

Total machine hours = 4,000

Predetermined overhead rate = Total overhead / Total machine hours

= $31,800 / 4,000

= 7.95 per machine hour

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