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Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Assembly Testing Department Department Total Overhead $729,000 $874,800 $1,603,800 Direct labor hours 117,000 60,840 177,840 Machine hours 50,750 31,973 82,723 Glaser uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labor hours. In the testing department, overhead is applied on the basis of machine hours. Actual data for the month of March are as follows: Assembly Testing Department Department Total Overhead $58,320 $69,984 $128,304 Direct labor hours 9,360 4,867 14,227 Machine hours 4,060 2,558 6,618 Required: 1. Calculate the predetermined overhead rates for the assembly and testing departments. Round your answers to the nearest cent. Assembly department overhead rate X per direct labor hour Testing department overhead rate X per machine hour 2. Calculate the overhead applied to production in each department for the month of March. If required, round your answers to nearest whole value. Assembly department Testing department 3. By how much has each department's overhead been overapplied? Underapplied? Assembly department Overapplied X Testing department Underapplied X

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