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Information: At the beginning of the year, Sorrel Company estimated the following: Total Machining Department $240,000 135,000 200,000 Assembly Department $360,000 240,000 Overhead Direct labor
Information: At the beginning of the year, Sorrel Company estimated the following: Total Machining Department $240,000 135,000 200,000 Assembly Department $360,000 240,000 Overhead Direct labor hours Machine hours $600,000 375,000 200,000 Sorrel uses departmental overhead rates. In the machining department, overhead is applied on the basis of machine hours. In the assembly department, overhead is applied on the basis of direct labor hours. Actual data for the month of June are as follows: Machining Department $22,500 11,000 17,000 Assembly Department $30,750 20,000 Overhead Direct labor hours Machine hours Total $53,250 31,000 17,000 Required: 1. Calculate the predetermined overhead rales for the machining and assembly departments, 2. Calculate the overhead applied to production in each department for the month of June, 3. By how much has each department's overhead been overopplied? Underapplied
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