Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two...
muah9Sweeten 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 | $ | 13,600 |
| Estimated variable manufacturing overhead per direct labor-hour | $ | 1.30 |
| Estimated total direct labor-hours to be worked | 3,400 | |
| Total actual manufacturing overhead costs incurred | $ | 18,000 |
| Job P | Job Q | |||
| Direct materials | $ | 18,500 | $ | 9,400 |
| Direct labor cost | $ | 47,500 | $ | 13,300 |
| Actual direct labor-hours worked | 2,500 | 700 | ||
| Required: |
| What is the company’s predetermined overhead rate? |
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