Chapter 4.docx - 1 Calculating Departmental Overhead Rates and Applying Overhead to Production At the beginning of the year Glaser Company estimated the

Chapter 4.docx - 1 Calculating Departmental Overhead Rates...

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1. 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 $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
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