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): Molding Fabrication Total Estimated total machine-hours used 2,500 1,500 4,000 Estimated total fixed manufacturing overhead $14,750 $17,850 $32,600 Estimated variable manufacturing overhead per machine-hour $ 3.30 $ 4.10 Job P $32,000 $36,200 Job $17,500 $15, 100 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 3,600 2,500 6,100 2,700 2,800 5,500 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, 1. What was the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.) Predetermined overhead rate per MH

Answer 1

Step 1:- Calculate the total overhead expenses.

Total overheads = (2,500 hours * $3.30 per hour) + (1,500 hours * $4.10 per hour) + $32,600(Fixed overheads)

Total overheads = $8,250 + $6,150 + $32,600

Total Overheads = $47,000

Step 2:- Calculate predetermined overhead rate

Predetermined overhead rate = $47,000/4,000 hours

Predetermined overhead rate = $11.75 per hour

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