Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following: Assembly Department Testing Department Total Overhead $467,000 $415,630 $882,630 Direct labor hours 140,000 138,600 278,600 Machine hours 109,250 81,938 191,188 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 Department Testing Department Total Overhead $46,700 $41,563 $88,263 Direct labor hours 14,000 13,860 27,860 Machine hours 10,925 8,194 19,119 Required: 1. Calculate the predetermined overhead rates for the assembly and testing departments. Round your answers to the nearest cent. Assembly department overhead rate $ per direct labor hour Testing department overhead rate $ 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 $ Testing department
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Calculating Departmental
Overhead Rates and Applying Overhead to ProductionAt the beginning of the year, Glaser Company estimated the following:
Assembly
DepartmentTesting
Department
TotalOverhead $467,000 $415,630 $882,630 Direct labor hours 140,000 138,600 278,600 Machine hours 109,250 81,938 191,188 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
DepartmentTesting
Department
TotalOverhead $46,700 $41,563 $88,263 Direct labor hours 14,000 13,860 27,860 Machine hours 10,925 8,194 19,119 Required:
1. Calculate the predetermined overhead rates for the assembly and testing departments. Round your answers to the nearest cent.
Assembly department overhead rate $ per direct labor hour Testing department overhead rate $ 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 $ Testing department $
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