Question

# Calculating Departmental Overhead Rates and Applying Overhead to Production

At the beginning of the year, Glaser Company estimated the following:

Assembly

DepartmentTesting

Department

Total

Direct labor hours82,000  95,940  177,940

Machine hours64,000  45,440  109,440

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

Total

Direct labor hours7,380  8,635  16,015

Machine hours5,760  4,090  9,850

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 \$

Solved by verified expert

onec aliquet. Lorem ipsum dolor sit amet, consectetur adip

fficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultric

Fusce dui lectus, congue vel laoreet ac, dictum

ec aliquet. Lorem ipsum dolor sit amet, consectetur adipisci

s a molestie consequat, ultrices ac magna.onec aliquet

ce dui lectus, congue vel laoreet ac, dictum vitae odio.

Explore over 16 million step-by-step answers from our library

Step-by-step explanation

consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque

Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec f

Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulv

onec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor

a. Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet,

Student review
100% (1 rating)