Calculating Departmental Overhead Rates and Applying Overhead to Production

At the beginning of the year, Glaser Company estimated the following:

Line Item Description	Assembly Department	Testing Department	Total
Overhead	$498,000	$557,760	$1,055,760
Direct labor hours	108,000	104,760	212,760
Machine hours	108,000	106,920	214,920

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:

Line Item Description	Assembly Department	Testing Department	Total
Overhead	$69,720	$78,086	$147,806
Direct labor hours	15,120	14,666	29,786
Machine hours	15,120	14,969	30,089

Required:

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

Line Item Description	Overhead rate
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.

Line Item Description	Amount
Assembly department
Testing department

3. By how much has each department's overhead been overapplied? Enter the amount and then select either "Overapplied" or "Underapplied".If applicable, enter overapplied amounts beginning with a minus (-) sign.

Line Item Description	Effect	Amount
Assembly department
Testing department