Predetermined Departmental Overhead Rates, Applying Overhead to Production At the beginning of the year, Jonson Company estimated the following: Polishing Firing Total Department Department $405,000 Overhead $110,000 $515,000 100,000 128,750 28,750 Direct labor hours 90,000 Kiln hours 90,000 Jonson uses departmental overhead rates. In the firing department, overhead is applied on the basis of kiln hours (number of hours spent in the gas-fired kiln). In the polishing department, overhead is applied on the basis of direct labor hours. Actual data for the month of July are as follows: Polishing Firing Total Department Department Overhead $34,000 $9,370 $43,370 10,950 2,350 8,600 Direct labor hours Kiln hours 7,400 7,400