Brief Exercise 17-1

Digger Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year.

Budgeted vs Actual

Overhead cost $1,122,000 $1,092,000

Machine hours 56,200 48,700

Direct labor hours 102,000 98,000

Compute the predetermined overhead rate. (Round answer to 2 decimal places, e.g. 12.25.)

1. Predetermined overhead rate $per direct labor hour

1. Determine the amount of overhead applied for the year.

Amount of overhead applied $