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At the beginning of the year, Glaser Company estimated the following: Assembly Testing Total Department Department $338 000 $630 000 $968 000 Overhead Direct labour
At the beginning of the year, Glaser Company estimated the following: Assembly Testing Total Department Department $338 000 $630 000 $968 000 Overhead Direct labour hours 130 000 40 000 170 000 Machine hours 45 000 120 000 165 000 Glaser uses departmental overhead rates. In the assembly department, overhead is allocated on the basis of direct labour hours. In the testing department, overhead is allocated on the basis of machine hours. Actual data for the month of March are as follows: Total Assembly Testing Department Department $29 850 $58 000 11 700 3450 Overhead $87 850 Direct labour hours 15 150 Machine hours 4 100 10 900 15 000 Required: 1 Calculate the predetermined overhead rates for the assembly and testing departments. 2 Calculate the overhead allocated to production in each department for the month of March. 3 By how much has each department's overhead been overallocated? Underallocated
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