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 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): Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Pabrication Total 2,500 1.500 .000 $11,500 $15,900 $27,400 $ 2.00 $ 2.80 Job $19,000 $25,800 Job O $11,000 S 9,900 Direet materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 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 location base in both departments 1. What was the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.) Predetermined overhead rate per MH

Answer 1

Particulars	Amount
Total Overheads of Plant
Total Variable Overheads
Molding ( 2500 MH * @ 2)	$ 5,000
Fabrication ( 1500 MH * @ 2.80)	$ 4,200
Total Variable Overheads	$ 9,200
Total Fixed Overhead	$ 27,400
Total Overheads of Plant	$ 36,600
Total Machine Hours	4,000
Pre determined overheads rate ($ 36,600 / 4,000)	$ 9.15