determine the answers to the following if the company expects a decrease from $600,000 to $525,000 in estimated Total Overhead and also uses the changes in Direct Labor Hours as indicated in part d above:

What is the Predetermined Plantwide Overhead Rate? $

What is the Overhead Applied in June? $

2 What is the amount of over- or underapplied overhead for June?

Scenario 1 At the beginning of the year, Sorrel Company estimated the following: Machining Assembly Department Department Total verhead $240,000 $360,000 $600,000 Direct labor 135,000 240,000 375,000 hours Machine hours 200,000 200,000 The Sorrel Company uses departmental overhead rates. In the machining department, overhead is applied on the basis of machine hours. In the assembly department, overhead is applied on the basis of direct labor hours. Actual data for the month of June are as follows: Machining Assembly Department Department Total verhead 22,500 30,750 53,250 Direct labor 11,000 hours 20,000 31,000 Machine hours 17,000 17,000 pen the attached spreadsheet. Complete question parts a - b on the spreadsheet. Be sure to use formulas in the gray shaded cells. The results of the formulas will be needed to perform the analysis required in the CengageNOW problem. Compare your spreadsheet answers for all steps of question parts a - b to the following Cornerstones to confirm that you have entered your formulas correctly. la. Step 1: Calculate the predetermined overhead rates for the machining and assembly departments. Step 2: Calculate the overhead applied to production in each department for the month of June. Step 3: By how much has each department's overhead been overapplied or underapplied? (Cornerstone 5.3) Step 1: Calculate the predetermined plantwide overhead rate based on direct labor hours. Step 2: Calculate the overhead applied to production for the month of June. Step 3: Calculate the overhead variance for the month of June. (Cornerstone 5.4) sing the spreadsheet information above in question part b, determine the answers to the following if the company expects a decrease from $600,000 to $525,000 in estimated Total Overhead and also uses the changes in Direct Labor Hours as indicated in part d above: 1. What is the Predetermined Plantwide Overhead Rate? $ 2. What is the Overhead Applied in June? $ 3. What is the amount of over- or underapplied overhead for June? $