Predetermined Departmental Overhead Rates, Applying Overhead to Production

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

Cutting Department Sewing Department Total

Overhead $$240,200$ $$350,900$ $$591,100$

Direct labor hours $31,200107,600138,800$

Machine hours $151,600151,600$

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 Department Sewing Department Total

Overhead $$20,500$ $$38,650$ $$59,150$

Direct labor hours $2,8008,62011,420$

Machine hours $13,61013,610$

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

Required:

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

Overhead rate for Cutting Department: $fill in the blank $2$

per machine hour

Overhead rate for Sewing Department: $fill in the blank $3$

per direct labor hour

$2.$ Calculate the overhead applied to production in each department for the month of June. Do not round intermediate calculations. Round your answers to the nearest dollar.

Overhead applied to Cutting Department in June: $fill in the blank $4$

Overhead applied to Sewing Department in June: $fill in the blank $5$

$3.$ By how much has each department's overhead been overapplied or underapplied? Round your answers to the nearest dollar.

Cutting Department: $fill in the blank $6$

Sewing Department: $fill in the blank $8$

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