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

	Machining Department	Assembly Department	Total
Overhead	$334,260	$252,945	$587,205
Direct labor hours	123,200	153,300	276,500
Machine hours	185,700	-	185,700

Carentan uses departmental overhead rates. In the machining department, overhead is applied on the basis of machine hours. In the assembly department, overhead is applied on the basis of direct labor hours. Actual data for the month of January are as follows:

	Machining Department	Assembly Department	Total
Overhead	$24,050	$23,799	$47,849
Direct labor hours	9,900	13,440	23,340
Machine hours	14,140	-	14,140

Complete the following table: If required, round your answers to the nearest cent.

	Machining Department	Assembly Department
Predetermined overhead rate	$ per machine hour	$ per direct labor hour
Overhead applied in January
Variance
Over-or-underapplied	- Select your answer -OverappliedUnderappliedCorrect 7 of Item 3	- Select your answer -OverappliedUnderapplied Correct 8 of Item 3