Question

Convert Departmental Data to Plantwide Data, Plantwide Overhead Rate, Apply Overhead to Production At the beginning of the year, Hallett Company estimated the following: Cutting Department Sewing Department Total Overhead $242,000 $350,000 $592,000 Direct labor hours 31,200 100,000 131,200 Machine hours 150,000 150,000 Assume that Hallett has decided to use a plantwide overhead rate based on direct labor hours. Actual data for the month of June are as follows: Cutting Department Sewing Department Total Overhead $20,610 $35,750 $56,360 Direct labor hours 2,800 8,600 11,400 Machine hours 13,640 13,640 Required: 1. Calculate the predetermined plantwide overhead rate. Round your answer to the nearest cent. per direct labor hour 2. Calculate the overhead applied to production for the month of June. Use an overhead application rate that is rounded to the nearest cent in your calculations, and round your final answer to the nearest dollar. 3. Calculate the overhead variance for the month of June.

          Convert Departmental Data to Plantwide Data, Plantwide Overhead Rate, Apply Overhead to Production
At the beginning of the year, Hallett Company estimated the following:
Cutting Department Sewing Department Total
Overhead
$242,000
$350,000
$592,000
Direct labor hours
31,200
100,000
131,200
Machine hours
150,000
150,000
Assume that Hallett has decided to use a plantwide overhead rate based on direct labor hours. Actual data for the
month of June are as follows:
Cutting Department Sewing Department Total
Overhead
$20,610
$35,750
$56,360
Direct labor hours
2,800
8,600
11,400
Machine hours
13,640
13,640
Required:
1. Calculate the predetermined plantwide overhead rate. Round your answer to the nearest cent.
per direct labor hour
2. Calculate the overhead applied to production for the month of June. Use an overhead application rate that is
rounded to the nearest cent in your calculations, and round your final answer to the nearest dollar.
3. Calculate the overhead variance for the month of June.

Convert Departmental Data to Plantwide Data, Plantwide Overhead Rate, Apply Overhead to Production
At the beginning of the year, Hallett Company estimated the following:
Cutting Department Sewing Department Total
Overhead
242,000350,000
592,000
Direct labor hours
31,200
100,000
131,200
Machine hours
150,000
150,000
Assume that Hallett has decided to use a plantwide overhead rate based on direct labor hours. Actual data for the
month of June are as follows:
Cutting Department Sewing Department Total
Overhead20,610
35,75056,360
Direct labor hours
2,800
8,600
11,400
Machine hours
13,640
13,640
Required:
1. Calculate the predetermined plantwide overhead rate. Round your answer to the nearest cent.
per direct labor hour
2. Calculate the overhead applied to production for the month of June. Use an overhead application rate that is
rounded to the nearest cent in your calculations, and round your final answer to the nearest dollar.
3. Calculate the overhead variance for the month of June.

Added by Aitor H.

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