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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

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 MarchJob 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

$10,750 $

15,450 $26,200

Estimated variable manufacturing overhead per

machine-hour

$

1.70 $

2.50

Job P

Job Q

Direct materials

$16,000 $9,500

Direct labor cost

$23,400 $8,700

Actual machine-hours used:

Molding

2,000 1,100

Fabrication

900 1,200

Total

2,900 2,300

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.

What was the company's plantwide predetermined overhead rate?

Predetermined Overhead Rate = Estimated Fixed Overhead/Estimated Direct Labor Hours + Variable Overhead

Rate Per Hour

Estimated total overhead = Estimated total fixed manufacturing overhead (26,200) + variable overhead molding

(machine hours:2500*var overhead per machine hour molding:1.70) + variable overhead fabrication (machine

hours:1500*var overhead per machine hour fabrication:2.50) = 26200 + 4250 + 3750 = 34,200

1. Plantwide predetermined rate = estimated total overhead (34,200)\estimated total machine hours (4000) =

8.55

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