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.

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