Blackfoot Softball Glove Company
Blackfoot Softball Glove Company Estimated the Following

Blackfoot Softball Glove Company
Blackfoot Softball Glove Company estimated the following yearly data at the beginning of the year: $\begin{array}{lccc}&\text { Assembly }\\&\text { Department }&\text { Testing Department }&\text { Total }\\\text { Overhead } & \$ 570,000 & \$ 130,000 & \$ 700,000 \\\text { Direct Labour Hours } & 142,500 & 32,500 & 175,000 \\\text { Machine Hours } & 32,000 & 65,000 & 97,000\end{array}$ The company uses departmental overhead rates. In the assembly department, direct labour hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.Actual data for August are as follows: $\begin{array}{lccc}& \text { Assembly } & \text { Testing } & \text { Total } \\ & \text { Department } & \text { Department } & \\\text { Overhead } & \$ 42,000 & \$ 12,000 & \$ 54,000 \\\text { Direct Labour Hours } & 13,500 & 2,430 & 15,930 \\\text { Machine Hours } & 4,020 & 11,000 & 15,020\end{array}$
-Refer to Blackfoot Softball Glove Company. Which statement best represents the departmental overhead rates?

A) Applied overhead for the testing department is $4,860.
B) Overhead for the assembly department is underapplied.
C) Applied overhead for the assembly department is $54,000.
D) Applied overhead for both departments combined is $63,720.