QUESTION: Katherine Ltd. has the following budgeted and actual information at year end: Budgeted Actual Production (units) Total variable overhead Total fixed overhead 64,000 65,600 $185,600 $185,200 $288,000 $279,000 Direct labour hours (total) 85,280 hrs Direct labour hours per unit 0.50 hrs Predetermined plantwide overhead rates are calculated using direct labour hours based on budgeted production. The company uses actual direct labour hours to assign overhead. Use the above information to answer the following questions. What is the fixed overhead application rate per direct labour hour? What is the applied fixed overhead for the year?