2 Exercise 5-13 Production Calculating Departmental Overhead Rates and Applying Overhead to At the beginning of the year, Videosym Company estimated the following: Testing Department Total Overhead Direct labour hours Machine hours Department $620,000 155,000 80,000 $180,000 20,000 120,000 $800,000 175,000 200,000 Videosym uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labour 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 Department S53,000 Testing Total $15,500 1,680 13,050 $68,500 Overhead Direct labour hours Machine hours 14,680 19,850 6,800 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 overapplied? Underapplied? 4. CONCEPTUAL CONNECTION Why don't we simply leave the overhead variance in the overhead control account at the end of the accounting period