Question 3 Palmer Co. has two departments that all goods pass through: machining and assembly. Machining overhead is applied based on machine hours, and assembly overhead is applied based on direct labour hours. Data on each department are as follows: Machining Assembly Budgeted Overhead $75,000 $40,000 Budgeted Direct Labour Hours 5,000 10,000 Budgeted Machine Hours 25,000 1,000 Actual Overhead $75,400 $39,200 Actual Direct Labour Hours 5,203 9,980 Actual Machine Hours 25,040 850 Required: 1. If the company applied overhead using a plantwide rate based on direct labour hours, calculated the plantwide overhead rate. 2. Calculate the overhead rate for each department. 3. What is each department's applied overhead? 4. Calculate each department's overhead variance. Specify whether it is overapplied or underapplied.