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	$238,000		$350,000		$588,000
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 plant wide 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. Use an overhead application rate that is rounded to the nearest cent in your calculations, and round your final answer to the nearest dollar. $

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