Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two...

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Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March—Job 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$10,000  
 Estimated variable manufacturing overhead per direct labor-hour$1.00  
 Estimated total direct labor-hours to be worked 2,000  
 Total actual manufacturing overhead costs incurred$12,500  

 

 Job PJob Q
 Direct materials$13,000   $8,000   
 Direct labor cost$21,000  $7,500   
 Actual direct labor-hours worked 1,400  500   

 

 Required:
 What is the company’s predetermined overhead rate?
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