Convert Departmental Data to Plantwide Data, Plantwide Overhead Rate, Apply Overhead to Production At the...

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Accounting

Convert Departmental Data to Plantwide Data, Plantwide Overhead Rate, Apply Overhead to Production

At the beginning of the year, Hallett Company estimated the following:

Cutting Department Sewing Department Total
Overhead $240,000 $350,000 $590,000
Direct labor hours 31,200 100,000 131,200
Machine hours 150,000 150,000

Assume that Hallett has decided to use a plantwide overhead rate based on direct labor hours. Actual data for the month of June are as follows:

Cutting Department Sewing Department Total
Overhead $20,610 $35,750 $56,360
Direct labor hours 2,800 8,600 11,400
Machine hours 13,640 13,640

Required:

1. Calculate the predetermined plantwide overhead rate. Round your answer to the nearest cent. $ per direct labor hour

2. Calculate the overhead applied to production for the month of June. $

3. Calculate the overhead variance for the month of June. $

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