The Orel Company manufactures products in two departments: Mixing and Packaging. The company allocates manufacturing overhead using a single plantwide rate with direct labor hours as the allocation base. Estimated overhead costs for the year are $ 598,000, and estimated direct labor hours are 260,000. In October, the company incurred 20,000 direct labor hours.

Requirement 1. Compute the predetermined overhead allocation rate. Round to two decimal places.

	/		=	Predetermined Allocation Rate
	/		=

Requirement 2. Determine the amount of overhead allocated in October.

Begin by selecting the formula to allocate overhead costs.

*

=

Allocated Overhead Manufacturing Costs

The overhead allocated in October is $______________