Mitchell's Softball Gloves Company estimated the following at the beginning of the year:

	Assembly Department		Testing Department		Total
Overhead	$570,000		$130,000		$700,000
Direct Labor Hours	142,500	hrs.	32,500	hrs.	175,000	hrs.
Machine Hours	32,000	hrs.	65,000	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:

	Assembly Department		Testing Department		Total
Overhead	$42,000		$12,000		$54,000
Direct Labor Hours	13,500	hrs.	2,430	hrs.	15,930	hrs.
Machine Hours	4,020	hrs.	11,000	hrs.	15,020	hrs.

Using departmental overhead rates, which of the following is correct?

a.Applied overhead for both departments combined is $63,720.

b.Overhead for the assembly department is underapplied.

c.Applied overhead for the assembly department is $54,000.

d.Applied overhead for the testing department is $4,860.

e.None of these choices are correct.