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Sheffield Church Furniture manufactures custom pews, altars, and pulpits for churches across the southern United States. Since each order is unique, Sheffield uses a job
Sheffield Church Furniture manufactures custom pews, altars, and pulpits for churches across the southern United States. Since each order is unique, Sheffield uses a job order costing system. During the month of June, Sheffield worked on orders for three churches: Faith Church, Grace Church, and Hope Church. Production on the Faith and Grace orders began in May, and the Faith job was completed in June. Production on the Hope order began in June and was incomplete at the end of the month. Sheffield applies overhead to each job based on machine hours. Prior to the year, managers had estimated manufacturing overhead at $651,000, along with 21,000 machine hours, Additional cost information related to the three orders is as follows: Faith Grace Hope $4.000 $2,900 $8.100 $6,300 $3,800 Beginning balance, June 1 Direct materials, June Direct labor, June Manufacturing OH, June Machine hours, June $13,400 $7.300 $5,300 ? ? ? 2,000 1.500 1,600 (a) What is Sheffield's predetermined overhead rate? Predetermined overhead rate $ / machine hour
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