A Company Has Two Departments That All Goods Pass Through

A company has two departments that all goods pass through: machining and assembly. Machining overhead is applied based on machine hours, and assembly overhead is applied based on direct labour hours. Data on each department are as follows: $\begin{array}{lrr}&\text { Machining }&\text { Assembly }\\\text { Budgeted Overhead } & \$ 75,000 & \$ 40,000 \\\text { Budgeted Direct Labour Hours } & 5,000 & 10,000 \\\text { Budgeted Machine Hours } & 25,000 & 1,000 \\\text { Actual Overhead } & \$ 75,400 & \$ 39,200 \\\text { Actual Direct Labour Hours } & 5,203 & 9,980 \\\text { Actual Machine Hours } & 25,040 & 850\end{array}$ A. Calculate the overhead rate for each department.
B. Calculate each department's applied overhead.
C. Calculate each department's overhead variance. Specify whether it is overapplied or underapplied.