Calculate the predetermined overhead rates

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Reference no: EM132110466

Question - 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

11,700

3,450

15,150

Machine hours

4,100

10,900

15,000

Required:

1. Calculate the predetermined overhead rates for the assembly and testing departments.

2. Calculate the overhead applied to production in each department for the month of March.

3. By how much has each department's overhead been overapplied? Underapplied?

Reference no: EM132110466

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