Refer to the information for Jonson Company above. Jonson uses departmental overhead rates.

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

Firing Department Polishing Department Total

Overhead....................$405,000....................$110,000............$515,000

Direct labor hours.............28,750.....................100,000..............128,750

Kiln hours......................90,000...........................-................90,000

In the firing department, overhead is applied on the basis of kiln hours (number of hours spent in the gas-fired kiln). In the polishing department, overhead is applied on the basis of direct labor hours. Actual data for the month of July are as follows:

Firing Department Polishing Department Total

Overhead.....................$34,000.....................$9,370...............$43,370

Direct labor hours...............2,350.......................8,600.................10,950

Kiln hours........................7,400..........................-....................7,400

Required:

1. Calculate the predetermined overhead rates for the firing and polishing departments.

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

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