Question

I did (21,000+(2,500x1.40+1500x2.20))/4000 and i got $6.95 per MH, but apparently its wrong. Someone plese help.

Estimated total machine-hours used Estimated total fixed manufacturing overhead Estimated variable manufacturing overhead per machine-hour Molding Fabrication Total 2,500 1,500 4,080 $10,000 $15,000 $25,000 $ 1.40 $ 2.20 Job P $13,000 $21,000 Job $8,000 $7,500 Direct materials Direct labor cost Actual machine-hours used: Molding Fabrication Total 1,700 600 2,300 800 900 1,700 Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month. 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 departmental predetermined overhead rates with machine-hours as the allocation base in both departments, Foundational 2-1 1. What was the company's plantwide predetermined overhead rate? (Round your answer to 2 decimal places.) Predetermined overhead rate $ 6.95 per MH

Answer 1

Total Overheads of the Plant:
Variable Overheads:
Molding	(2500*1.40)	3500
Fabrication	(1500*2.20)	3300
Total Variable Overheads		6,800
Fixed Overheads:
Molding			10,000
Fabrication		15,000
Total Fixed overheads		25,000
Total Overheads of the Plant:		31,800
Divide: Total DLH			4,000
Plantwide Oh rate per DLH		7.95
Answer is $ 7.95 per DLH