2. Wixom Motors makes windshield washer motors for the Ford F-150. Wixom Motors has two overhead cost pools: machining and assembly. Machining overhead is allocated on machine-hours. Assembly overhead is allocated on direct labor hours. Budget Overhead Machine hours Direct labor hours Direct labor dollars Machining dept. $900,000 30,000 5,000 $100,000 Assembly dept. $400,000 10,000 20,000 $550,000 Total $1,300,000 40,000 25,000 $650,000 Actual results Actual overhead Machine hours Direct labor hours Direct labor dollars $920,000 31,500 5,600 $118,000 $410,000 10,500 21,200 $545,000 $1,330,000 42,000 31,800 $663,000 Job 299 used: Machine hours Direct labor hours Direct labor dollars Machining dept. 610 machine hours 32 $640 Assembly dept. 95 machine hours 195 $3900 1. If there is one overhead rate, based on direct labor dollars, then What is the overhead application rate: per direct labor dollars How much overhead is applied to Job 299 $ 2. If departmental overhead rates are used, what is the overhead application rate for: Machining dept. $ per machine hr. Assembly dept. $ direct labor hour How much total overhead is applied to this job? 3. Assume that one overhead rate (based on direct labor dollars) is used for the entire plant. At the end of the year is overhead over-applied or under-applied, and by how much? $ Gover / under) circle one