Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the year, Debion Company estimated the following: Overhead $735,900 Direct labor hours 87,250 Debion uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 20,940. Required: 1. Calculate the predetermined overhead rate for Debion. Round your answer to the nearest cent. 8.0 X per direct labor hour 2. Calculate the overhead applied to production in March. Round your intermediate calculations to two decimal places and round your answer to nearest whole value. 167,520 X Feedback Check My Work 1. Predetermined ovethead rate is an estimate based on dividing the estimated overhead costs by the estimated activity level. 2. Multiply overhead rate by the associated driver.