7.6% The following data is provided for the ABC company Budgeted overhead for the year is $300,000 Projected direct labor cost for the year - $200,000 Estimated machine hours for the year -10,000 Estimated direct labor hours for the year - 10,000 Overhead is applied to product based on direct labor costs During the month of June the company incurred 2000 labor hours, used 3000 machine hours and incurred $40,000 of labor costs and $70,000 of overhead costs. Calculate A, 3% The overhead rate B 3% The amount of overhead applied in June