Question
Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the year, Debion Company estimated the following: Line Item Description Amount Overhead
Calculating the Predetermined Overhead Rate, Applying Overhead to Production
At the beginning of the year, Debion Company estimated the following:
Line Item Description | Amount |
---|---|
Overhead | $583,500 |
Direct labor hours | 78,000 |
Debion uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 17,160.
Required:
1. Calculate the predetermined overhead rate for Debion. Round your answer to the nearest cent. fill in the blank 1 of 1$ 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. fill in the blank 1 of 1$
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