At the beginning of the year, Potatoes Unlimited (PU) estimated the following:

	Harvesting Department	Packaging Department	Total
Overhead	$310,000	$90,000	$400,000
Direct Labour Hours	77,500	10,000	87,500
Machine Hours	40,000	60,000	100,000

PU uses departmental overhead rates. In the Harvesting Department, overhead is applied on the basis of machine hours. In the Packaging Department, overhead is applied on the basis of direct labour hours. Actual data for the month of August are as follows.

	Harvesting Department	Packaging Department	Total
Overhead	$26,500	$7,750	$34,250
Direct Labour Hours	6,500	840	7,340
Machine Hours	3,400	6,525	9,925

Required:

Calculate the predetermined overhead rates for the Harvesting and Packaging Departments.

Calculate the overhead applied to production in each department for August.

How much as each department's overhead been overapplied or underapplied?