Overhead to Production At the beginning of the year, Jeffords Company estimated the following:

\[\begin{array}{lr} \text { Overhead } & \$ 450,000 \\ \text { Direct labor hours } & 90,000 \end{array}\]

Jeffords uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours equaled 7,300 .

Required:

1. Calculate the predetermined overhead rate for Jeffords.
2. Calculate the overhead applied to production in March.

Transcribed Image Text:

Overhead $450,000 Direct labor hours 90,000