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To calculate the predetermined overhead rates for the assembly and testing departments, we need to divide the total overhead by the total direct labor hours
To calculate the predetermined overhead rates for the assembly and testing departments, we need to divide the total overhead by the total direct labor hours for the assembly department and by the total machine hours for the testing department. For the assembly department: Predetermined overhead rate = Total Overhead / Direct labor hours = $662,000 / 59,500 hours = $11.13 per direct labor hour For the testing department: Predetermined overhead rate = Total Overhead / Machine hours = $655,380 / 112,815 hours = $5.81 per machine hour So, the assembly department overhead rate is $11.13 per direct labor hour and the testing department overhead rate is $5.81 per machine hour. Calculate the overhead applied to production in each department for the month of March. If required, round your answers to nearest whole value
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