Calculating Departmental Overhead Rates and Applying Overhead to Production

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

	Assembly Department			Testing Department			Total
Overhead	$422,000			$472,640			$894,640
Direct labor hours	119,000			111,860			230,860
Machine hours	96,500			107,115			203,615

Glaser uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labor 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			Testing Department			Total
Overhead	$46,420			$51,990			$98,410
Direct labor hours	13,090			12,305			25,395
Machine hours	10,615			11,783			22,398

Required:

1. Calculate the predetermined overhead rates for the assembly and testing departments. Round your answers to the nearest cent.

Assembly department overhead rate	$fill in the blank 1 per direct labor hour
Testing department overhead rate	$fill in the blank 2 per machine hour

2. Calculate the overhead applied to production in each department for the month of March. If required, round your answers to nearest whole value.

Assembly department	$fill in the blank 3
Testing department	$fill in the blank 4

3. By how much has each department's overhead been overapplied? Underapplied?

Assembly department	Overapplied	$fill in the blank 6
Testing department	Underapplied	$fill in the blank 8