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i safari File Edit View History Bookmarks Window Help 100% . Tue 1:36 AM Quiz Chapter 2 Help Save & Exit Submit Check my work Required information The fowowing information apples to the questions displayed below. Part 1 of 7 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 (all data and questions relate to the month of March 10 points company as a whole and for Jobs P and Q Molding Fabrication 7otal Eatinated total fixed manufacturing overhead Ext natod variabl-manufacturing carerh_ad Per maehine-boar $10,000 15,000 $25,000 1.40 2.20 Job P Job Q 913,000 S8,000 921,000 $7,500 Print Direct labor cost otual nachinc-hoaro usedi 800 Fabrication Total Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. 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.) $ 9.20 per MH Prev 1 2 3 7of 7 Next 5 0Explanation / Answer
Plantwide predetermined overhead rate
$7.95 per MH
Explanation;
Plantwide predetermined overhead rate =
Total estimated manufacturing overhead / Total estimated machine hours
Total estimated manufacturing overhead =
$25000 + (2500 * $1.40) + (1500 * $2.20)
= $25000 + $3500 + $3300
= $31800
Total estimated machine hours = 4000
Now, let’s calculate plantwide predetermined overhead rate;
Plantwide predetermined overhead rate ($31800 / 4000) = $7.95
Plantwide predetermined overhead rate
$7.95 per MH
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