Exercise 4-40 Calculating Departmental Overhead Rates and Applying Overhead At the beginning of the year, Glaser Company estimated the following: Testing Assembly Department $338,000 130,000 Department Total S968,000 Direct labor hours Machine hours $630,000 40,000 120,000 170,000 165,000 45,000 Glaser uses departmental overhead rates. In the assembly department, overhead is applied c the basis of direct labor hours. In the testing department, overhead is applied on the basis machine hours. Actual data for the month of March are as follows: Testing Department Assembly Department $29,850 11,700 4,100 Total $87,850 Overhead Direct labor hours Machine hours $58,000 3,450 15,150 15,000 10,900