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Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following:

Calculating Departmental Overhead Rates and Applying Overhead to Production

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

 Assembly

DepartmentTesting

Department

TotalOverhead$736,000  $640,320  $1,376,320  Direct labor hours82,000  95,940  177,940  Machine hours64,000  45,440  109,440  Glaser uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labor hours. In the testing department, overhead is applied on the basis of machine hours. Actual data for the month of March are as follows:

 Assembly

DepartmentTesting

Department

TotalOverhead$66,240  $57,629  $123,869  Direct labor hours7,380  8,635  16,015  Machine hours5,760  4,090  9,850  Required:

1. Calculate the predetermined overhead rates for the assembly and testing departments. Round your answers to the nearest cent.

Assembly department overhead rate$ per direct labor hourTesting department overhead rate$ per machine hour2. Calculate the overhead applied to production in each department for the month of March. If required, round your answers to nearest whole value.

Assembly department$Testing department$3. By how much has each department's overhead been overapplied? Underapplied?

Assembly department 

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