At the beginning of the year, Badger Company estimated the following:

Badger 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 rates for the cutting and sewing departments.
2. Calculate the overhead applied to production in each department for the month of June.
3. By how much has each department's overhead been overapplied?Underapplied?

Transcribed Image Text:

Overhead Direct labor hours Machine hours Cutting Department $378,000 131,200 210,000 Sewing Department $450,000 200,00 Total $828,000 331,200 210,000 Overhead Direct labor hours Machine hours Cutting Department $32,612 11,800 17,840 Sewing Department $35,750 16,000 Total $68,362 27,800 17,840