Applying Overhead Q1. It is projected at the beginning of the year that Best Fabrics is expected to incur $1,335,000 of overhead expenses in 2022. Best Fabrics has a policy of allocating overhead on the basis of direct labor hours using a plant-wide rate. Best Fabrics has three departments: Yarn, Fabric and Clothing. Which respectively expect to incur 500, 410 and 735 hours of direct labor hours in 2022. Q1a. What predetermined overhead rate (PDOR) should McKay Mills use?