1. 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	$413,000			$425,390			$838,390
   Direct labor hours	76,500			68,850			145,350
   Machine hours	114,500			131,675			246,175

   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	$57,820			$59,555			$117,375
   Direct labor hours	10,710			9,639			20,349
   Machine hours	16,030			18,435			34,465

   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		$