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pinolena64
pinolena64
24.06.2020 • 
Business

At the beginning of the year, Glaser Company estimated the following: Assembly Department Testing Department Total
Overhead $338,000 $630,000 $968,000
Direct labor hours 130,000 40,000 170,000
Machine hours 45,000 120,000 165,000

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 $29,850 $58,000 $87,850
Direct labor hours 11,700    3,450 15,150
Machine hours   4,100 10,900 15,000

Required:
a. Calculate the predetermined overhead rates for the assembly and testing departments.
b. Calculate the overhead applied to production in each department for the month of March.
c. By how much has each departmentâs overhead been overapplied? Underapplied?

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