What was the company plantwide predetermined overhead rate
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 |
$12,250 |
$16,350 |
$28,600 |
|
Estimated variable manufacturing overhead per machine-hour |
$2.30 |
$3.10 |
|
|
|
Job P |
Job Q |
|
Direct materials |
$22,000 |
$12,500 |
|
Direct labor cost |
$28,200 |
$11,100 |
|
Actual machine-hours used: |
|
|
|
Molding |
2,600 |
1,700 |
|
Fabrication |
1,500 |
1,800 |
|
Total |
4,100 |
3,500 |
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Required: For question, assume that Sweeten Company uses a plant wide predetermined overhead rate with machine-hours as the allocation base.
What was the Company's plantwide predetermined overhead rate?
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