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David manufactures snowboards for aspiring Olympic athletes and estimates the following: Designing Drilling Department Department Total Overhead $ 78,000 $ 72,000 $150,000 Direct labour hours

David manufactures snowboards for aspiring Olympic athletes and estimates the following: Designing Drilling Department Department Total Overhead $ 78,000 $ 72,000 $150,000 Direct labour hours 6,000 1,600 7,600 Machine hours 12,500 16,000 28,500 David uses departmental overhead rates for his business. In the Designing Department, overhead is applied on the basis of direct labour hours. In the Drilling Department, overhead is applied on the basis of machine hours. Actual data for the month of June is as follows: Designing Drilling Total Department Department Overhead $ 48,700 $ 60,200 $ 108,900 Direct labour hours 3,600 2,200 5,800 Machine hours 10,200 14,000 24,200 Use the above information to answer the following questions. What is the predetermined departmental overhead rate for the Designing Department? HINT: remember to apply the rounding rules. What is the predetermined departmental overhead rate for the Drilling Department? HINT: remember to apply the rounding rules. What is the overhead applied to production in the Designing Department for the month of June? HINT: remember to apply the rounding rules. What is the overhead applied to production in the Drilling Department for the month of June? HINT: remember to apply the rounding rules. Is overhead for the Designing Department under- or over-applied? Enter either the word UNDER or OVER Do not add additional spaces and be sure to spell the word you enter exactly as shown. By how much? HINT: be sure to use the entry rules

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