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Predetermined Departmental Overhead Rates, Applying Overhead to Production At the beginning of the year, Jonson Company estimated the following: Overhead Direct labor hours Kiln hours
Predetermined Departmental Overhead Rates, Applying Overhead to Production At the beginning of the year, Jonson Company estimated the following: Overhead Direct labor hours Kiln hours $110,000 $515,000 28,750 100,000 128,750 90,000 90,000 Jonson uses departmental overhead rates. In the firing department, overhead is applied on the basis of kiln hours (number of hours spent in the gas-fired kiln). In the polishing department, overhead is applied on the basis of direct labor hours. Actual data for the month of July are as follows: Overhead Direct labor hours Kiln hours Firing Department $405,000 Required: Firing Department $34,000 2,350 Polishing Department 7,400 Total Polishing Department $9,370 8,600 Total $43,370 10,950 7,400 1. Calculate the predetermined overhead rates for the firing and polishing departments. Round your answers to the nearest cent. Firing department overhead rate per Kiln hour Polishing department overhead rate per direct labor hour 2. Calculate the overhead applied to production in each department for the month of July. Overhead applied to firing in July Overhead applied to polishing in July
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