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

	Cutting Department		Sewing Department		Total
Overhead	$240,000		$350,000		$590,000
Direct labor hours	31,200		100,000		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		Total
Overhead	$20,610		$35,750		$56,360
Direct labor hours	2,800		8,600		11,400
Machine hours	13,640		—		13,640

Required:

1. Calculate the predetermined plantwide overhead rate. Round your answer to the nearest cent.
$ per direct labor hour

2. Calculate the overhead applied to production for the month of June.
3. Calculate the overhead variance for the month of June.

Answer rating: 100% (QA)

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