CONVERT DEPARTMENTAL DATA TO PLANTWIDE DATA, PLANTWIDE OVERHEAD RATE, APPLY OVERHEAD TO PRODUCTION At the beginning of the year, Badger Company estimated the following:

Cutting Department Sewing Department Total Overhead $378,000 $450,000 $828,000 Direct labor hours 131,200 200,000 331,200 Machine hours 210,000 — 210,000 Badger 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 $32,612 $35,750 $68,362 Direct labor hours 11,800 16,000 27,800 Machine hours 17,840 — 17,840 Required:

. Calculate the predetermined plantwide overhead rate.

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

. Calculate the overhead variance for the month of June.

Cornerstone Exercise