1. Predetermined Overhead Rate, Overhead Application At the beginning of the year, Ilberg Company estimated the following costs: Overhead $416,000 Direct labor cost 520,000 Ilberg uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of December, direct labor cost was $43,700.

a. Calculate the predetermined overhead rate for the year. Enter the percentage as a whole number. % of direct labor cost

b. Calculate the overhead applied to production in December. $

2.

Overhead Variance (Over- or Underapplied), Closing to Cost of Goods Sold

At the end of the year, Ilberg Company provided the following actual information:

Overhead	$423,600
Direct labor cost	532,000

Ilberg uses normal costing and applies overhead at the rate of 80% of direct labor cost. At the end of the year, Cost of Goods Sold (before adjusting for any overhead variance) was $1,890,000.

Required:

a. Calculate the overhead variance for the year. $

b. Dispose of the overhead variance by adjusting Cost of Goods Sold. Adjusted COGS $

3.

Predetermined Departmental Overhead Rates, Applying 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

Hallett uses departmental overhead rates. In the cutting department, overhead is applied on the basis of machine hours. In the sewing department, overhead is applied on the basis of 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:

a. Calculate the predetermined overhead rates for the cutting and sewing departments. Round your answers to the nearest cent.

Cutting department overhead rate	$ per machine hour
Sewing department overhead rate	$ per direct labor hour

b. Calculate the overhead applied to production in each department for the month of June.

Overhead applied to cutting in June	$
Overhead applied to sewing in June	$

c. By how much has each department's overhead been overapplied or underapplied?

Cutting department overhead variance	$
Sewing department overhead variance	$