Required Information [The following Information applies to the questions displayed below.] 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 $27,400 of fixed manufacturing overhead cost for the coming pernod and variable manufacturing overhead of $2.30 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: Estimated total machine-hours used Molding Fabrication 2,500 1,500 Estimated total fixed manufacturing overhead $ 11,500 $ 2.00 $ 15,900 $ 2.80 Estimated variable manufacturing overhead per machine-hour The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job Q $ 11,000 $ 9,900 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $ 19,000 $ 25,800 Predetermined overhead rate 2,300 1,200 3,500 1. What is the company's plantwide predetermined overhead rate? Note: Round your answer to 2 decimal places. per MH 1,400 1,500 2,900 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. Total 4,000 $ 27,400
Required Information [The following Information applies to the questions displayed below.] 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 $27,400 of fixed manufacturing overhead cost for the coming pernod and variable manufacturing overhead of $2.30 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: Estimated total machine-hours used Molding Fabrication 2,500 1,500 Estimated total fixed manufacturing overhead $ 11,500 $ 2.00 $ 15,900 $ 2.80 Estimated variable manufacturing overhead per machine-hour The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows: Job Q $ 11,000 $ 9,900 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $ 19,000 $ 25,800 Predetermined overhead rate 2,300 1,200 3,500 1. What is the company's plantwide predetermined overhead rate? Note: Round your answer to 2 decimal places. per MH 1,400 1,500 2,900 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. Total 4,000 $ 27,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am.103.
![Required Information
[The following Information applies to the questions displayed below.]
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 $27,400 of fixed manufacturing overhead
cost for the coming pernod and variable manufacturing overhead of $2.30 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:
Direct materials
Direct labor cost
Actual machine-hours used:
Molding
Fabrication
Estimated total machine-hours used
Estimated total fixed manufacturing overhead
Estimated variable manufacturing overhead per machine-hour
The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:
Total
Job P
$ 19,000
$ 25,800
Predetermined overhead rate
2,300
1,200
3,500
1. What is the company's plantwide predetermined overhead rate?
Note: Round your answer to 2 decimal places.
per MH
Molding Fabrication
2,500 1,500
$ 11,500
$ 2.00
$ 15,900
$ 2.80
Job Q
$ 11,000
$ 9,900
Total
1,480
1,500
2,900
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.
4,090
$ 27,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa13b1d31-16d8-4ff4-a836-ab51e948fbd1%2Feb310b0b-24a5-420a-aca5-e2f85a312680%2Fvct9etb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required Information
[The following Information applies to the questions displayed below.]
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 $27,400 of fixed manufacturing overhead
cost for the coming pernod and variable manufacturing overhead of $2.30 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:
Direct materials
Direct labor cost
Actual machine-hours used:
Molding
Fabrication
Estimated total machine-hours used
Estimated total fixed manufacturing overhead
Estimated variable manufacturing overhead per machine-hour
The direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:
Total
Job P
$ 19,000
$ 25,800
Predetermined overhead rate
2,300
1,200
3,500
1. What is the company's plantwide predetermined overhead rate?
Note: Round your answer to 2 decimal places.
per MH
Molding Fabrication
2,500 1,500
$ 11,500
$ 2.00
$ 15,900
$ 2.80
Job Q
$ 11,000
$ 9,900
Total
1,480
1,500
2,900
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.
4,090
$ 27,400
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