Question
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during MarchJob P and
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during MarchJob P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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): |
Estimated total fixed manufacturing overhead | $ | 16,000 |
Estimated variable manufacturing overhead per direct labor-hour | $ | 1.90 |
Estimated total direct labor-hours to be worked | 4,000 | |
Total actual manufacturing overhead costs incurred | $ | 22,200 |
Job P | Job Q | |||
Direct materials | $ | 22,700 | $ | 8,500 |
Direct labor cost | $ | 58,900 | $ | 10,450 |
Actual direct labor-hours worked | 3,100 | 550 | ||
1.What is the companys predetermined overhead rate?
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