The Foundational $15($Algo$)[$LO$2-1,$ LO$2-2,$ LO$2-3,$ LO$2-4]$

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Sweeten Company had no jobs in progress at the beginning of the year and no beginning inventories. It started, completed, and sold only two jobs during the year$$Job P and Job Q$.$ The company uses a plantwide predetermined overhead rate based on machine$-$hours. At the beginning of the year, it estimated that $4,000$ machine$-$hours would be required for the period$$s estimated level of production. Sweeten also estimated $$31,400$ of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $$3\mathrm{.}30$ per machine$-$hour.

Because Sweeten has two manufacturing departments$$Molding and Fabrication$$it is considering replacing its plantwide overhead rate with departmental rates that would also be based on machine$-$hours. The company gathered the following additional information to enable calculating departmental overhead rates:

Molding Fabrication Total

Estimated total machine$-$hours used $2,5001,5004,000$

Estimated total fixed manufacturing overhead $ $14,000$ $ $17,400$ $ $31,400$

Estimated variable manufacturing overhead per machine$-$hour $ $3\mathrm{.}00$ $ $3\mathrm{.}80$

The direct materials cost, direct labor cost, and machine$-$hours used for Jobs P and Q are as follows:

Job P Job Q

Direct materials $ $29,000$ $ $16,000$

Direct labor cost $ $33,800$ $ $13,900$

Actual machine$-$hours used:

Molding $3,3002,400$

Fabrication $2,2002,500$

Total $5,5004,900$

Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.

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 predetermined departmental overhead rates with machine$-$hours as the allocation base in both departments.

Foundational $2-1($Algo$)$

$1.$ What is the company$$s plantwide predetermined overhead rate?

Note: Round your answer to $2$ decimal places.