Question: Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the year, Kester Company estimated the following:
Overhead $621,600
Direct labor hours 84,000
Kester uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 7,400.
Required: 1. Calculate the predetermined overhead rate for Kester.
2. Calculate the overhead applied to production in March.