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 |
$ |
10,000 |
| Estimated variable manufacturing overhead per direct labor-hour |
$ |
1.00 |
| Estimated total direct labor-hours to be worked |
|
2,000 |
| Total actual manufacturing overhead costs incurred |
$ |
12,500 |
| |
Job P |
Job Q |
| Direct materials |
$ |
13,000 |
$ |
8,000 |
| Direct labor cost |
$ |
21,000 |
$ |
7,500 |
| Actual direct labor-hours worked |
|
1,400 |
|
500 |
Required:
What is the company's predetermined overhead rate?