Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Testing Assembly Department Department Total Overhead $665,000 $778,050 $1,443,050 Direct labor hours 65,000 68,250 133,250 Machine hours 65,500 81,875 147,375 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 $86,450 $101,147 $187,597 Direct labor hours 8,450 8,873 17,323 Machine hours 8,515 10,644 19,159 Required: 1. Calculate the predetermined overhead rates for the assembly and testing departments. Round your answers to the nearest cent. Assembly department overhead rate per direct labor hour Testing department overhead rate 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