Mitchell's Softball Gloves Company estimated the following at the beginning of the year: Assembly Department Testing Department Total Overhead $652,500 $150,000 $802,500 Direct Labor Hours 145,000 hrs. 37,500hrs. 182,500hrs. Machine Hours 43,500hrs. 50,000hrs. 93,500hrs. 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: Assembly Department Testing Department Total Overhead $45,000 $13,000 $58,000 Direct Labor Hours 12,500hrs. 2,460hrs. 14,960hrs. Machine Hours 4,030hrs. 11,500hrs. 15,530hrs. Using departmental overhead rates, which of the following is correct? Applied overhead for both departments combined is $90,750. None of these are correct. Overhead for the assembly department is underapplied. Applied overhead for the testing department is $7,380