Convert Departmental Data to Plantwide Data, Plantwide Overhead Rate, Apply Overhead to Production

At the beginning of the year, Jonson Company estimated the following:

	Firing Department		Polishing Department		Total
Overhead	$405,000		$110,000		$515,000
Direct labor hours	28,750		100,000		128,750
Kiln hours	90,000				90,000

Assume that Jonson has decided to use a plantwide overhead rate based on direct labor hours. Actual data for the month of July are as follows:

	Firing Department		Polishing Department		Total
Overhead	$34,000		$9,370		$43,370
Direct labor hours	2,350		8,600		10,950
Kiln hours	7,400				7,400

Required:

1. Calculate the predetermined plantwide overhead rate. $ per direct labor hour

2. Calculate the overhead applied to production for the month of July. $

3. Calculate the overhead variance for the month of July.