UR Company has two products, U and R. Overhead costs are presently allocated to the two products based on the labor-hours used to produce each product. It takes one labor-hour to make one unit of each product. If total overhead is $260,000, what is the total overhead allocated to Product U using the current method of allocating overhead based on labor-hours (80,000 labor-hours for U and 50,000 labor-hours for R)?

a) Calculate the Predetermined Overhead Rate $ per DLH

b) Calculate the amount of overhead applied to Product U $