Question

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.

Calculating the Predetermined Overhead Rate, Applying Overhead to Production, Reconciling Overhead at the End of the Year, Adjusting Cost of Goods Sold for Under- and Overapplied Overhead

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

Overhead	$180,000
Direct labor hours	90,000

Han uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 8,450. By the end of the year, Han showed the following actual amounts:

Overhead	$186,000
Direct labor hours	89,600

Assume that unadjusted Cost of Goods Sold for Han was $216,000.

Required:

1. Calculate the predetermined overhead rate for Han. Round your answers to the nearest cent, if rounding is required.
$ per direct labor hour

2. Calculate the overhead applied to production in January. (Note: Round to the nearest dollar, if rounding is required.)
$

3. Calculate the total applied overhead for the year.
$

Was overhead over- or underapplied? By how much?
overhead $

4. Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance.
$

Answer 1

Question 1, 2, & 3 - Jonson Company