Question
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
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. $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started