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[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 $26,200 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 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 2,500 Fabrication 1,500 Estimated total machine-hours used Estimated total fixed manufacturing overhead $ 10,750 $ 1.78 $ 15,450 $ 2.50 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: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $ 16,000 $ 23,400 2,000 900 2,908 Job Q $ ,500 $ 8,700 1,100 1,200 2,300 Total 4,000 $ 26,200 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 ratow machine-hours as the allocation base in both

[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 $26,200 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 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 2,500 Fabrication 1,500 Estimated total machine-hours used Estimated total fixed manufacturing overhead $ 10,750 $ 1.78 $ 15,450 $ 2.50 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: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $ 16,000 $ 23,400 2,000 900 2,908 Job Q $ ,500 $ 8,700 1,100 1,200 2,300 Total 4,000 $ 26,200 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 ratow machine-hours as the allocation base in both

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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! Required Information The Foundational 15 (Algo) [LO2-1, LO2-2, LO2-3, LO2-4] [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 $26,200 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 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 2,500 Estimated total machine-hours used Fabrication 1.500 Estimated total fixed manufacturing overhead $ 10,750 $ 1.70 $ 15,450 $ 2.50 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: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $ 16,000 $ 23,400 Predetermined overhead rate 2,000 900 2,900 per MH Job Q $ 9,500 $ 8,700 1,100 1,200 2,300 Total 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. 4,000 $ 26,200 Foundational 2-1 (Algo) 1. What is the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)
Transcribed Image Text:! Required Information The Foundational 15 (Algo) [LO2-1, LO2-2, LO2-3, LO2-4] [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 $26,200 of fixed manufacturing overhead cost for the coming period and variable manufacturing overhead of $2.00 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 2,500 Estimated total machine-hours used Fabrication 1.500 Estimated total fixed manufacturing overhead $ 10,750 $ 1.70 $ 15,450 $ 2.50 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: Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total Job P $ 16,000 $ 23,400 Predetermined overhead rate 2,000 900 2,900 per MH Job Q $ 9,500 $ 8,700 1,100 1,200 2,300 Total 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. 4,000 $ 26,200 Foundational 2-1 (Algo) 1. What is the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)
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