Hamilton Company applies manufacturing overhead costs to products based on direct labor hours. The company estimates manufacturing overhead cost for the year to be $260,000 and direct labor hours to be 20,000. Actual overhead for the year was $285,000.

Required:

1. Compute the predetermined overhead rate.

2. If the company actually used 23,000 direct labor hours, how much manufacturing overhead is applied to the company's jobs?

Q 1. Predetermined Overhead Rate = ?

Q 2. Applied Manufacturing = ?