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Question - 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 March- Job 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
$12,250
$16,350
$28,600
Estimated variable manufacturing overhead per machine-hour
$2.30
$3.10
Job P
Job Q
Direct materials
$22,000
$12,500
Direct labor cost
$28,200
$11,100
Actual machine-hours used:
2,600
1,700
1,800
4,100
3,500
Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.
Required: For question, assume that Sweeten Company uses a plant wide predetermined overhead rate with machine-hours as the allocation base.
What was the Company's plantwide predetermined overhead rate?
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