Calculator Mitchell's Softball Gloves Company estimated the following at the beginning of the year: Overhead Direct Labor Hours Machine Hours Assembly Department $570,000 142,500 hrs. 32,000 hrs. Testing Department $130,000 32,500 hrs. 65,000 hrs. Total $700,000 175,000 hrs. 97,000 hrs. Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. Actual data for August is as follows: Overhead Direct Labor Hours Machine Hours Assembly Department $42,000 13,500 hrs. 4,020 hrs. Testing Department $12,000 2,430 hrs. 11,000 hrs. Total $54,000 15,930 hrs. 15,020 hrs. Using departmental overhead rates, which of the following is correct? a. Applied overhead for the assembly department is $54,000. b. Applied overhead for both departments combined is $63,720. c. Overhead for the assembly department is underapplied. d. Applied overhead for the testing department is $4,860. e. None of these choices are correct