Question
Convert Departmental Data to Plantwide Data, Plantwide Overhead Rate, Apply Overhead to Production At the beginning...
Convert Departmental Data to Plantwide Data, Plantwide Overhead Rate, Apply Overhead to Production
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 | ||
Assume that Jonson has decided to use a plantwide overhead rate based on 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.
$ per direct labor hour
2. Calculate the overhead applied to production
for the month of July.
$
3. Calculate the overhead variance for the month of July.
Homework Answers
Answer #1
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