12. A company has two departments that all goods pass through, machining and assembly. Machining overhead is applied based on machine hours and assembly overhead is applied based on direct labor hours. Data on each department is as follows: Budgeted overhead Budgeted direct labor hours Budgeted machine hours Actual overhead Actual direct labor hours Actual machine hours Machining $75,000 5,000 hrs. 25,000 hrs. $75,400 5,203 hrs. 25,040 hrs. Assembly $40,000 10,000 hrs. 1,000 hrs. $39,200 9,980 hrs. 850 hrs. A. Calculate the overhead rate for each department. What is each department's applied overhead? Calculate cach department's overhead variance. Specify whether it is overapplied or underapplied