4-36 Application of Overhead Norton Associates is an advertising agency in Austin, Texas. The company's controller estimated that it would incur $325,000 in overhead costs for the current year. Because the overhead costs of each project change in direct proportion to the amount of direct profes- sional hours incurred, the controller decided that overhead should be applied on the basis of profes- sional hours. The controller estimated 25,000 professional hours for the year. During October, Norton incurred the following costs to make a 20-second TV commercial for Central Texas Bank: Direct materials Direct professional hours ($50/hour) $32,000 1,200 The industry customarily bills customers at 150% of total cost. Required 1. Compute the predetermined overhead rate, 2. What is the total amount of the bill that Norton will send Central Texas Bank