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Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Overhead Direct labor hours
Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Overhead Direct labor hours Machine hours Assembly Department Testing Department Total $371,000 $419,230 $790,230 54,500 100,000 67,580 106,000 122,080 206,000 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 $55,650 $62,885 $118,535 Direct labor hours 8,175 10,137 18,312 Machine hours 15,000 15,900 30,900 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 per direct labor hour 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 Testing department 3. By how much has each department's overhead been overapplied? Underapplied? Assembly department Testing department
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