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 32,500 175,000 Machine Hours 32,000 65,000 97,000 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 is as follows: Assembly Department Testing Department Total Overhead $42,000 $12,000 $54,000 Direct Labor Hours 13,500 2,430 15,930 Machine Hours 4,020 11,000 15,020 Using Departmental overhead rates, which of the following is correct? Answer Applied overhead for the assembly department is $54,000 Applied overhead for the testing department is $4,860. Applied overhead for both departments combined is $63,720 Overhead for the assembly department is underapplied. none of these