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 Fabrication Total 2,500 1,500 4,000 $12,750 $16,650 $29,400 2.50 $ 3.30 Job P $24,000 $29,800 Dobo $13,500 $11,900 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,800 1,700 4,500 1,980 2,000 113,989 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. hat was the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.) determined overhead rate per MH

Answer 1

Answer :Plantwide predetermined overhead rate = $10.15 per MH.

Explanation:

Estimated total variable manufacturing overhead = ($2.50 * 2,500 machine hrs) + ($3.30 * 1,500 machine hrs)

= $6,250 + $4,950 = $11,200

Plantwide predetermined overhead rate

= (Estimated total variable manufacturing overhead + Estimated total fixed manufacturing overhead) / Estimated total machine hrs used

= ($11,200 + $29,400) / 4,000 machine hrs

= $10.15 per MH