Reference no: EM13761900

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?