Use the following information for Brief Exercises 4-24 and 4-25:
At the beginning of the year, Hallett Company estimated the following:
Brief Exercise 4-24 Predetermined Departmental Overhead Rates, Applying Overhead to Production
Refer to the information for Hallett Company above. 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:
Required:
1.
Calculate the predetermined overhead rate for cutting and sewing departments
Predetermined Overhead Rate:
The amount, which is calculated at the beginning of the accounting year for a related activity by dividing the total estimated annual overhead by estimated annual activity level, is known as the predetermined overhead rate.
Use the following formula to calculate predetermined overhead rate of cutting department::
Substitute $240,000 for estimated annual overhead and $150,000 for estimated annual activity level in the above formula.
2.
Calculate the overhead applied to production in each department for the month of June.
3.
Calculate the amount of over applied or under applied overhead for each department.
Intermediate Accounting: Reporting And Analysis
Financial & Managerial Accounting
Financial And Managerial Accounting
Accounting Information Systems
College Accounting, Chapters 1-27
Financial Accounting
Corporate Financial Accounting
Management, Loose-Leaf Version
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Principles of Economics (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Contemporary Marketing
Brief Principles of Macroeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Accounting Information Systems
Foundations of Business (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Essentials of Economics (MindTap Course List)
MKTG 12:STUDENT ED.-TEXT
Principles of Microeconomics (MindTap Course List)
Financial Accounting
College Accounting (Book Only): A Career Approach
Financial & Managerial Accounting
Accounting (Text Only)
Exploring Economics
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Statistics for Business & Economics, Revised (MindTap Course List)
College Accounting (Book Only): A Career Approach
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Principles of Macroeconomics (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Fundamentals of Financial Management (MindTap Course List)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Corporate Financial Accounting
Survey of Accounting (Accounting I)
Practical Management Science
Microeconomics
Economics (MindTap Course List)
Purchasing and Supply Chain Management
Cornerstones of Cost Management (Cornerstones Series)