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

Videosym 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:

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?

Transcribed Image Text:

Overheacd Direct labor hours Machine hours Assembly Department $620,000 155,000 80,000 Testing Department $180,000 20,000 120,000 Total $800,000 175,000 200,000 Assembly Departmen esting Department Total Overhead Direct labor hours Machine hours $53,000 13,000 6,800 $15,500 1,680 13,050 $68,500 14,680 19,850