Question

REYR IRBURE The Foundational 15 (LO2-1, L02-2, LO2-3, LO2-4) 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): Estated total machine-hours used Estimated total fixed manufacturing overhead Estated variable manufacturing overhead per machine-hour Holding Fabrication Total 2,500 1.500 4.000 $11,000 $15,600 526,600 $ 1.80 $ 2.60 Job P $17,000 $24,200 Job O $10,000 $ 9, 100 Direet materials Direct labor cost Ketual machine-hours used: Holding Fabrication Total 2.100 1.000 3,100 1.200 1.300 2,500 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 Foundational 2-9 9. What were the company's predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.) Predetermined Overhead Rate Der VH Molding Department Fabrication Department 1 per MH

Answer 1

Departmental Predetermined Overhead Rate
Molding Department
Fixed Overhead Predetermined overhead rate = Total overhead/number of hours
=$11000/2500 hours
=$4.4 per hour
Total Predetermined Overhead Rate = $4.4+1.80
=$6.2 Per MH
Fabrication Department
Fixed overhead rate
=$15600/1500
=$10.4
Total Overhead predetermined overhead rate   =$10.40+2.60
=$13 per MH