Refer to the information in Brief Exercise 4-31 for data. Now, assume that Jonson has decided to use a plantwide overhead rate based on direct labor hours.

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

Firing Department Polishing Department Total

Overhead....................$405,000....................$110,000............$515,000

Direct labor hours.............28,750.....................100,000..............128,750

Kiln hours......................90,000...........................-................90,000

In the firing department, overhead is applied on the basis of kiln hours (number of hours spent in the gas-fired kiln). In the polishing department, overhead is applied on the basis of direct labor hours. Actual data for the month of July are as follows:

Firing Department Polishing Department Total

Overhead.....................$34,000.....................$9,370...............$43,370

Direct labor hours...............2,350.......................8,600.................10,950

Kiln hours........................7,400..........................-....................7,400

Required:

1. Calculate the predetermined plantwide overhead rate.

2. Calculate the overhead applied to production for the month of July.

3. Calculate the overhead variance for the month of July.