!Required InformationThe 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 predeterminedoverhead rate based on machine-hours. At the beginning of the year, it estimated that 4,000 machine-hours would berequired for the period's estimated level of production. Sweeten also estimated $26,200 of fixed manufacturing overheadcost for the coming period and variable manufacturing overhead of $2.00 per machine-hour.Because Sweeten has two manufacturing departments-Molding and Fabrication-It is considering replacing its plantwideoverhead rate with departmental rates that would also be based on machine-hours. The company gathered the followingadditional Information to enable calculating departmental overhead rates:Molding2,500Estimated total machine-hours usedFabrication1.500Estimated total fixed manufacturing overhead$ 10,750$ 1.70$ 15,450$ 2.50Estimated variable manufacturing overhead per machine-hourThe direct materials cost, direct labor cost, and machine-hours used for Jobs P and Q are as follows:Direct materialsDirect labor costActual machine-hours used:MoldingFabricationTotalJob P$ 16,000$ 23,400Predetermined overhead rate2,0009002,900per MHJob Q$ 9,500$ 8,7001,1001,2002,300TotalSweeten 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 asthe allocation base. For questions, 9-15, assume that the company uses predetermined departmental overhead rates withmachine-hours as the allocation base in both departments.4,000$ 26,200Foundational 2-1 (Algo)1. What is the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)

Lets understand the basics.The pre-determined overhead rate is calculated as the estimated overhead…

[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

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter4: Accounting For Factory Overhead

Section: Chapter Questions

Problem 17E: Nelson Fabrication Inc. had a remaining credit balance of $20,000 in its under- and overapplied...