Question

Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the year, Debion...

Calculating the Predetermined Overhead Rate, Applying Overhead to Production

At the beginning of the year, Debion Company estimated the following:

Overhead $700,500
Direct labor hours 78,250

Debion uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 14,085.

Required:

1. Calculate the predetermined overhead rate for Debion. Round your answer to the nearest cent.
$ per direct labor hour

2. Calculate the overhead applied to production in March. Round your intermediate calculations to two decimal places and round your answer to nearest whole value.
$

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Homework Answers

Answer #1

1.predetermined over head rate = $8.95 per direct labour hour.

2. Applied overhead to production in March = $126,061.

For any clarification, please comment.

Thank you.

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