Tota's Hockey Pads Company estimated the following at the beginning of the years Overhead Direct Labor Hours Machine Hours Assembly Department $570,000 142.500 hrs 32,000 hrs Testing Department $130,000 32,500 hrs 65.000 hrs. Total $700,000 175,000 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: Total $54,000 15.930 h 15,020 hrs Assembly Department Testing Department Overhead 342,000 $12,000 Direct Labor Hours 13,500 hrs 2,430 hrs Machine Hours 4,020 11,000 hrs Using departmental overhead rates, which of the following is correct? Overhead for the assembly department is underapplied O Applied overhead for the testing department is $4,860 Applied overhead for the assembly department is $54,000 Applied overhead for both departments combined is $63,720