Predetermined Departmental Overhead Rates, Applying Overhead to Production

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

Cutting DepartmentSewing DepartmentTotalOverhead$240,000$350,000$590,000Direct labor hours31,20099,100130,300Machine hours150,000150,000

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:

Cutting DepartmentSewing DepartmentTotalOverhead$20,610$35,750$56,360Direct labor hours2,8008,60011,400Machine hours13,64013,640

Required:

1.Calculate the predetermined overhead rates for the cutting and sewing departments. Round your answers to the nearest cent.

Cutting department$per machine hourSewing department$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$ ? overapplied

Sewing department$ ? underapplied