Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

Exercise 23

Convert Departmental Data to Plantwide Data, Plantwide Overhead Rate, Apply Overhead to Production
At the beginning of the year, Hallett Company estimated the following:

Refer to the information in Cornerstone Exercise 5-24 for data. Now, assume that Hallett has decided to use a plantwide overhead rate based on direct labor hours.
Required:
1. Calculate the predetermined plantwide overhead rate. ( Note : Round to the nearest cent.)
2. Calculate the overhead applied to production for the month of June.
3. Calculate the overhead variance for the month of June.