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 $245,000 $350,000 100,000 Overhead $595,000 Direct labor hours 31,200 131,200 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 Overhead Direct labor hours Machine hours Total $20,610 2,000 13,640 $35,750 8,600 Total $56,360 11,400 13,640

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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
Overhead
$245,000
Direct labor hours
31,200
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
$35,750
8,600
Overhead
Direct labor hours
Machine hours
Required:
$20,610
2,000
13,640
$350,000
100,000
Total
$595,000
131,200
Total
$56,360
11,400
13,640
1. Calculate the predetermined plantwide overhead rate. Round your answer to the nearest cent
per direct labor hour
3. Calculate the overhead variance for the month of June.
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
Transcribed Image Text: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 Overhead $245,000 Direct labor hours 31,200 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 $35,750 8,600 Overhead Direct labor hours Machine hours Required: $20,610 2,000 13,640 $350,000 100,000 Total $595,000 131,200 Total $56,360 11,400 13,640 1. Calculate the predetermined plantwide overhead rate. Round your answer to the nearest cent per direct labor hour 3. Calculate the overhead variance for the month of June. 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
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