Question

Rec o ration The w o man to the questions yed below) Sweet Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments Molding and Fabrication started, completed and sold only two during March Job P and Job Q. The following additional information is available for the company as whole and for Jobs Panda ta and Guestions relate to the month of March d al Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month Required: For questions 1-, asume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base for questions 9-15 sume 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 is complete but not entirely correct. Predetermined overhead ratie 20.000.000 MacBook Pro 8 9 0 delete

Answer 1

Answer

$7.95 per machine hour

Explanation:

Variable Overheads = (2500 * $1.4) + (1500 * $2.2)

= $3500 + $3300

= $6800

Total Overheads = Fixed Overheads + variable Overheads

= $25,000 + $6800

= $31800

Predetermined overhead rate = $31800 / 4000

= $7.95 per machine hour

In case of any doubt, please comment.