Question - Calculating the Predetermined Overhead Rate, Applying Overhead to Production
At the beginning of the year, Debion Company estimated the following:
Overhead $522,900
Direct labor hours 83,000
Debion uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 7,600.
Required:
1. Calculate the predetermined overhead rate for Debion. Round your answer to the nearest cent.
2. Calculate the overhead applied to production in March.