Predetermined Departmental Overhead Rates, Applying Overhead to Production At the beginning of the year, Badger Company estimated the following: Cutting Department Sewing Department Total Overhead $240,000 $350,000 $590,000 Direct labour hours 31,200 100,500 131,700 Machine hours 138,000 138,000 Badger uses departmental overhead rates. In the cutting department, overhead is applied on the basis of machine hours. In the sewing department, overhead is applied on the basis of direct labour hours. Actual data for the month of June are as follows: Cutting Department Sewing Department Total Overhead $29,850 $31,100 $73,800 Direct labour hours 9,000 12,150 21,150 Machine hours 14,750 14,750 Required: 1. Calculate the predetermined overhead rates for the cutting and sewing departments. Round your answers to the nearest cent. Cutting department $fill in the blank 1 1.88 per machine hour Sewing department $fill in the blank 2 3.51 per direct labour hour 2. Calculate the overhead applied to production in each department for the month of June. Use overhead application rates that are rounded to the nearest cent in your calculations, and round your final answers to the nearest dollar. Cutting department $fill in the blank 3 Sewing department $fill in the blank 4 3. By how much has each department's overhead been overapplied or underapplied? Cutting department $fill in the blank 5 underapplied Sewing department $fill in the blank 7 overapplied