. Calculate the predetermined overhead rates for the cutting and sewing departments. Round your answers to the nearest cent. Overhead rate for Cutting Department: $ per machine hour Overhead rate for Sewing Department: $ 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: $ Overhead applied to Sewing Department in June: $ 3. By how much has each department's overhead been overapplied or underapplied? Round your answers to the nearest dollar. Cutting Department: $ overapplied Sewing Department: $ underapplied
. Calculate the predetermined overhead rates for the cutting and sewing departments. Round your answers to the nearest cent. Overhead rate for Cutting Department: $ per machine hour Overhead rate for Sewing Department: $ 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: $ Overhead applied to Sewing Department in June: $ 3. By how much has each department's overhead been overapplied or underapplied? Round your answers to the nearest dollar. Cutting Department: $ overapplied Sewing Department: $ underapplied
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 10P: Determining job costcalculation of predetermined rate for applying overhead by direct labor cost and...
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Question
Predetermined Departmental
At the beginning of the year, Hallett Company estimated the following:
Cutting Department | Sewing Department | Total | |||
Overhead | $245,800 | $353,000 | $598,800 | ||
Direct labor hours | 31,200 | 101,100 | 132,300 | ||
Machine hours | 155,800 | — | 155,800 |
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 | $20,540 | $35,850 | $56,390 | ||
Direct labor hours | 2,800 | 8,740 | 11,540 | ||
Machine hours | 13,660 | — | 13,660 |
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.
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: $ per machine hour | ||
Overhead rate for Sewing Department: $ 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: $ | ||
Overhead applied to Sewing Department in June: $ |
3. | By how much has each department's overhead been overapplied or underapplied? Round your answers to the nearest dollar. |
Cutting Department: $ overapplied | |
Sewing Department: $ underapplied |
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