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At the beginning of the year, Hallett Company estimated the following: Overhead Direct labor hours Machine hours Cutting Department $240,000 31,200 150,000 Sewing Department
At the beginning of the year, Hallett Company estimated the following: Overhead Direct labor hours Machine hours Cutting Department $240,000 31,200 150,000 Sewing Department Total $350,000 $590,000 99,200 130,400 150,000 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: Overhead Direct labor hours Machine hours Required: Cutting Department $20,610 2,800 13,640 Sewing Department Total $35,750 $56,360 8,600 11,400 13,640 1. Calculate the predetermined overhead rates for the cutting and sewing departments. Round your answers to the nearest cent. Cutting department per machine hour Sewing department per direct labor hour 2. Calculate the overhead applied to production in each department for the month of June. Use overhead application rates that are rounded to the nearest cent in your calculations, and round your final answers to the nearest dollar Cutting department Sewing department 3. By how much has each department's overhead been overapplied or underapplied? Cutting department Sewing department.
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