Question

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 $8,000 $7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total like 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?

Answer 1