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Predetermined Departmemal Overhead Rates, Applying Overhead to Production At the
beginning of the year, Hallett Company estimated the following Hallett uses departmental
overhead rates. In the cutting department, overhead is applied on the basis of machipe hours. In
the sewing department; overhead is applied on the basis of direct labor houts. Actual data for the
month of June are as follows: 1. Calculate the predetermined overhead rates for the cutting and
sewing departments. Round your answers to the nearest cent. Cutting department Sewing
department. per machine hour. 2. Calculate the overhead applied to production in each
department for the month of June. Use overhead application rates that are rounded to the nearest
cent in your calculations, and round your final answers to the nearest dollar. Cutting department
Sewing department 3. By how much has each department's overhead been overapplied or
underappled?

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