Question

Print itenm Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year, Glaser Company estimated the following Assembly Departmernt $445,000 73,500 75,000 Testing Total Overhead Direct labor hours Machine hours $970,100 525,100 0,425 2,500 113,925 27,500 Glaser uses departmental overhead rates. In the assembly department, overhead s 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 mosth of March are as follows Testing Department Department Total 562,300 10,290 10,500 73,514 ,660 7,350 $135,814 Direct labor hours Machine hours Requiredi I. Calculate the predetermined overhead rates for the assembly and testieng departments. Round your answers to the nearest cent Assembly department overhead rate Testing department overtead rate 15,950 17,850 per direct labor hou per machinne hou

Answer 1

1) Pre determined overhead rate
Particulars	Assembly Department	Testing Department
Overhead	$445,000	$525,100
Direct Labour Hours	73,500	40,425
Overhead Rate	6.10	13.00
2) Overhead Applied to production of March
Particulars	Assembly Department	Testing Department
Direct Labour Hours	10,290	5,600
Predetrmined overhead rate	6.1	13.0
Cost allocated	62,769	72,800
3) Underapplied/overapplied Departmental's Cost
Particulars	Assembly Department	Testing Department
Actual Cost	$62,300	$73,514
Pre-Determined rate	$62,769	$72,800.00
(Overapplied)/Underapplied	($469)	$714