QS 15-8 Predetermined overhead rate LO P3 At the beginning of a year, a company predicts total direct materials costs of $980,000 and total overhead costs of $1,310,000. If the company uses direct materials costs as its activity base to apply overhead, what is the predetermined overhead rate it should use during the year? Predetermined overhead rate Choose Numerator: Choose Denominator: Rate 1 Rate 1 QS 15-9 Applying overhead LO P3 On March 1 a dressmaker starts work on three custom-designed wedding dresses. The company uses job order costing and applies overhead to each job (dress) at the rate of 46% of direct materials costs. During the month, the jobs used direct materials as shown below. Compute the amount of overhead applied to each of the three jobs Direct materials used Job 13ob 2 Jobs $6,6ee 58,600 $3,100 Overhead Applied Job 1 Job 2 Job 3 QS 15-11 Entry for over- or underapplied overhead LO P4 A company applies overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $931,000, and direct labor cost is $545,000 Determine whether there is over- or underapplied overhead using the T-account below. Factory Overhead