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	$441,000			$498,330			$939,330
Direct labor hours	110,000			69,300			179,300
Machine hours	62,750			43,925			106,675

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	$35,280			$39,866			$75,146
Direct labor hours	8,800			5,544			14,344
Machine hours	5,020			3,514			8,534

Required:

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

Assembly department overhead rate
Testing department overhead rate

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
Testing department

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