Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the year, Badiyan Company estimated the following:

\[\begin{array}{lr} \text { Overhead } & \$ 270,000 \\ \text { Direct labor hours } & 90,000 \end{array}\]
Badiyan uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours equaled 8,150 .
Required:
1. Calculate the predetermined overhead rate for Badiyan.
2. Calculate the overhead applied to production in January.

Transcribed Image Text:

Overhead Direct labor hours $270,000 90,000