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

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:

Required:
1. Calculate the predetermined overhead rates for the assembly and testing departments.
2. Calculate the overhead applied to production in each department for the month of March.
3. By how much has each department's overhead been over-applied? Under-applied?

Transcribed Image Text:

Testing Assembl Departmen Department Total Overhead Direct labor hours Machine hours $338,000 130,000 45.000 $630,000 40,000 120,000 S968.000 170,000 165,000 Assembly Testing Total Overhead Direct labor hours Machine hours 29.850 11,700 4.100 S58,000 150 10,900 $87,850 15,150 15,000