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Business, 09.10.2021 18:00 josephvaldez518

Mitchell's Softball Gloves Company estimated the following at the beginning of the year: Assembly Department Testing Department Total Overhead $570,000 $130,000 $700,000 Direct labor hours 142,500 hrs. 32,500 hrs. 175,000 hrs. Machine hours 32,000 hrs. 65,000 hrs. 97,000 hrs. Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department. Actual data for August are as follows: Assembly Department Testing Department Total Overhead $42,000 $12,000 $54,000 Direct labor hours 13,500 hrs. 2,430 hrs. 15,930 hrs. Machine hours 4,020 hrs. 11,000 hrs. 15,020 hrs. Using departmental overhead rates, which of the following is correct? a. Overhead for the assembly department is underapplied. b. Applied overhead for both departments combined is $63,720. c. Applied overhead for the testing department is $4,860. d. Applied overhead for the assembly department is $54,000. e. None of these choices are correct.

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