Dymo Manufacturing has two departments that produce small appliances. The Assembly Department allocates manufacturing overhead using machine hours as the allocation base while
the Painting Department allocates manufacturing overhead using direct labour cost as the
allocation base. Data for March are shown below:
| | Assembly Dept. | Painting Dept. |
| Estimated annual manufacturing overhead costs | $60,000 | $165,000 |
| Estimated annual direct labour cost | $30,000 | $300,000 |
| Estimated annual machine hours | 20,000 | 3,000 |
| Actual manufacturing overhead costs for March | $3,000 | $7,500 |
| Actual direct labour cost for March | $1,750 | $15,500 |
| Actual machine hours for March | 1,050 | 250 |
| A) | Determine the predetermined manufacturing overhead rate for the Assembly Department. |
| B) | Determine the predetermined manufacturing overhead rate for the Painting Department. |
| C) | Determine the balances of the manufacturing overhead accounts for each department as of |
March 31. Indicate whether the amounts represent over allocated or under allocated manufacturing overhead.
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