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	$374,000			$445,060			$819,060
Direct labor hours	154,000			109,340			263,340
Machine hours	55,500			64,380			119,880

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	$37,400			$44,506			$81,906
Direct labor hours	15,400			10,934			26,334
Machine hours	5,550			6,438			11,988

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	$
Testing department	$

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

Assembly department		$
Testing department		$