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 (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 $12,250 $16,350 $28,600 $ 2.30 $ 3.10 Job P $22,000 $28,200 Job $12,500 $11, 100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 2,600 1.500 4.100 1,700 1.800 500 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 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 Molding Department Fabrication Department per MH per MH

Answer 1

Calculate the company's predetermined overhead rates in molding department and the fabrication department, as follows:

Molding Fabrication $12,250.000 $16,350.00 Fixed manufacturing overheads [A] Machine-hours used 2,5001 1,500 [B] $4.90 $10.90 Fixed manufacturing overheads per machine hour (a) [A +B] Variable manufacturing overheads (6) Predetermined overhead rate per machine hour (a + b) $2.301 $3.10 $7.20 $14.00

Therefore, the predetermined overhead rates in molding department is $7.20 per MH and the the predetermined overhead rates in the fabrication department is $14.00 per MH.