Because Sweeten has two manufacturing departments Molding and Fabrication it is considering replacing its plantwide overhead rate
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Question:
Because Sweeten has two manufacturing departmentsMolding and Fabricationit is considering replacing its plantwide overhead rate with departmental rates that would also be based on machinehours. The company gathered the following additional information to enable calculating departmental overhead rates:
Molding Fabrication Total
Estimated total machinehours used
Estimated total fixed manufacturing overhead $ $ $
Estimated variable manufacturing overhead per machinehour $ $
The direct materials cost, direct labor cost, and machinehours used for Jobs P and Q are as follows:
Job P Job Q
Direct materials $ $
Direct labor cost $ $
Actual machinehours used:
Molding
Fabrication
Total
Sweeten Company had no overapplied or underapplied manufacturing overhead costs during the year.
Required:
For questions assume that Sweeten Company uses a plantwide predetermined overhead rate with machinehours as the allocation base. For questions, assume that the company uses predetermined departmental overhead rates with machinehours as the allocation base in both departments.
What is the companys plantwide predetermined overhead rate?
Note: Round your answer to decimal places.
Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
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