Toosat, Inc. has estimated the following operating data for the current year: Direct labor hours: 29000 Machine hours: 9000 Direct materials cost: $80000 Manufacturing overhead: $85000 Assume that Toosat, Inc. computes a predetermined overhead rate annually based on direct labor hours. During January of the current year, Toosat, Inc. works on 2 products, and accumulated the following actual operating data by product. Note that these are now actual results, not estimates.

	Product 1	Product 2	Total
Direct labor hours	448	1582	2030
Machine hours	228	627	855
Direct materials cost	$2430	$4770	$7200

Actual manufacturing overhead for January is $7225. Toosat, Inc. uses a predetermined overhead rate (POHR). It is computed based on estimates at the beginning of a year. This accomplishes the smoothing of uneven overhead costs and give Toosat, Inc. the ability to assign costs to products in a timely manner. What is the predetermined overhead rate (per direct labor hour) that Toosat, Inc. will use in the current year? Round the rate to the nearest penny for your answer. USE THE ROUNDED RATE IN THIS ANSWER BOX in other calculations. How much total overhead will Toosat, Inc. apply to Product 1 in January? (Hint: when a company applies (or charges) overhead to a product, it uses the POHR and the ACTUAL level of the cost driver for the product.) Round your answer to the nearest dollar

Question #2

Clarrin, Inc. has estimated the following operating data for the current year: Direct labor hours: 26000 Machine hours: 13000 Direct materials cost: $60000 Manufacturing overhead: $163000 Assume that Clarrin, Inc. computes a predetermined overhead rate annually based on direct labor hours. During January of the current year, Clarrin, Inc. works on 2 products, and accumulated the following actual operating data by product:

	Product 1	Product 2	Total
Direct labor hours	402	1938	2340
Machine hours	315	725	1040
Direct materials cost	$1770	$2730	$4500

Actual manufacturing overhead for January is $13855. What is the predetermined overhead rate (per direct labor hour) that Clarrin, Inc. will use in the current year? Round the rate to the nearest penny for your answer. USE THE ROUNDED RATE IN THIS ANSWER BOX in other calculations. How much total overhead will Clarrin, Inc. apply to inventory in January? Round your answer to the nearest dollar. What is the overhead variance for January? Enter as a positive number (no sign