CALCULATING THE PREDETERMINED OVERHEAD RATE, APPLYING OVERHEAD TO PRODUCTION At the beginning of the year, Natrina Company estimated the following:

Overhead $570,000 Direct labor hours 95,000 Natrina uses normal costing and applies overhead on the basis of direct labor hours.

For the month of March, direct labor hours were 7,400.

Required:

. Calculate the predetermined overhead rate for Natrina.

. Calculate the overhead applied to production in March.

Exercise