5-31 Calculating the Predetermined Overhead Rate, Applying Overhead to Production

At the beginning of the year, Debion Company estimated the following:

Overhead$522,900Direct labor hours83,000

Debion uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 7,600.

Required:

1.Calculate the predetermined overhead rate for Debion. Round your answer to the nearest cent.

$per direct labor hour

2.Calculate the overhead applied to production in March.

$