Problem
Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March-Job P and Job Q. Job P was completed and sold by the end of the March and Job Q was incomplete at the end of the March. The company uses a plantwide predetermined overhead rate based on direct labor-hours. 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):
Estimated total fixed manufacturing overhead $ 13,500
Estimated variable manufacturing overhead per direct labor-hour $ 1.70
Estimated total direct labor-hours to be worked 2,700
Total actual manufacturing overhead costs incurred $ 17,100
|
Job P
|
Job Q
|
|
Direct materials
|
$
|
17,600
|
$
|
8,700
|
|
Direct labor cost
|
$
|
32,400
|
$
|
7,200
|
|
Actual direct labor-hours worked
|
|
1,800
|
|
400
|
1. What is the company's predetermined overhead rate?
2. How much manufacturing overhead was applied to Job P and Job Q?
3. What is the direct labor hourly wage rate?