Question

The Foundational 15 (LO2-1, LO2-2, 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): 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 $10,000 $15,000 $ 25,000 $ 1.40 $ 2.20 Job P $13,000 $21,000 Job o $8,000 $ 7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 2,300 800 900 1,700 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 2-1 1. What was the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.) Prodetermined overhead rate per MH

Answer 1

1		Molding	Fabrication	Total
	Fixed manufacturing overhead	$10,000	$15,000	$25,000
	Variable manufacturing overhead	$3,500	$3,300	$6,800
	Total estimated manf. Overhead			$31,800
	Estimated total machine hours	2,500	1,500	4,000
	Predetermined overhead rate			$7.95	per MH
2		Job P	Job Q
	Manufacturing Overhead applied	$18,285	$13,515
		(2,300*7.95)	(1,700*7.95)
3		Job P
	Direct materials	$13,000
	Direct labor cost	$21,000
	Manufacturing overhead	$18,285
	Total manufacturing cost	$52,285
4	Total manufacturing cost	$52,285
	Total units	20
	Unit product cost	$2,614
5		Job Q
	Direct materials	$8,000
	Direct labor cost	$7,500
	Manufacturing overhead	$13,515
	Total manufacturing cost	$29,015