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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 | $ | 13,600 |
| Estimated variable manufacturing overhead per direct labor-hour | $ | 1.30 |
| Estimated total direct labor-hours to be worked | 3,400 | |
| Total actual manufacturing overhead costs incurred | $ | 18,000 |
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| Job P | Job Q | |||
| Direct materials | $ | 18,500 | $ | 9,400 |
| Direct labor cost | $ | 47,500 | $ | 13,300 |
| Actual direct labor-hours worked | 2,500 | 700 | ||
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| Required: |
| What is the company’s predetermined overhead rate? |
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