Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Overhead Direct labor hours Machine hours Overhead Direct labor hours Assembly Department $470,000 Machine hours 104,000 79,250 Testing Department Total Assembly Testing Department Department Total $56,400 12,480 9,510 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: $399,500 128,960 95,100 $ $ $47,940 15,475 $869,500 11,412 232,960 174,350 04,340 27,955 20,922 Required: 1. Calculate the predetermined overhead rates for the assembly and testing departments. Round your answers to the nearest cent. Assembly department overhead rate Testing department overhead rate 2. Calculate the overhead applied to production in each department for the month of March. If required, round your answers to nearest whole value. $ per direct labor hour $ per machine hour Assembly department Testing department 3. By how much has each department's overhead been overapplied? Underapplied? Assembly department $ Testing department $

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Calculating Departmental Overhead Rates and Applying Overhead to Production
At the beginning of the year, Glaser Company estimated the following:
Overhead
Direct labor
hours
Machine
hours
Overhead
Direct labor
hours
Assembly
Department
$470,000
Machine
hours
104,000
79,250
Testing
Department Total
Assembly
Testing
Department Department Total
$56,400
12,480
9,510
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:
$399,500
128,960
95,100
$
$
$47,940
15,475
$869,500
11,412
232,960
174,350
$104,340
27,955
20,922
Required:
1. Calculate the predetermined overhead rates for the assembly and testing departments. Round your answers to the
nearest cent.
Assembly department overhead rate
Testing department overhead rate
2. Calculate the overhead applied to production in each department for the month of March. If required, round your
answers to nearest whole value.
$ per direct labor hour
$ per machine hour
Assembly department
Testing department
3. By how much has each department's overhead been overapplied? Underapplied?
Assembly department
$
$
Testing department
Transcribed Image Text:Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Overhead Direct labor hours Machine hours Overhead Direct labor hours Assembly Department $470,000 Machine hours 104,000 79,250 Testing Department Total Assembly Testing Department Department Total $56,400 12,480 9,510 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: $399,500 128,960 95,100 $ $ $47,940 15,475 $869,500 11,412 232,960 174,350 $104,340 27,955 20,922 Required: 1. Calculate the predetermined overhead rates for the assembly and testing departments. Round your answers to the nearest cent. Assembly department overhead rate Testing department overhead rate 2. Calculate the overhead applied to production in each department for the month of March. If required, round your answers to nearest whole value. $ per direct labor hour $ per machine hour Assembly department Testing department 3. By how much has each department's overhead been overapplied? Underapplied? Assembly department $ $ Testing department
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