Ben Whitney manufactures holiday decorations. Overhead is applied to products on the basis of direct labor hours. Last year, total overhead costs were expected to be $85,000. Actual overhead costs totaled $88,750 for 8,400 actual hours. At the end of the year, overhead was underapplied by $4,750.

Required:

A. Calculate the predetermined overhead rate. $ per hour

B. How much overhead should be applied to a job that was completed in three direct labor hours? $