Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger

Exercise 54

Calculating the Predetermined Overhead Rate, Applying Overhead to Production
At the beginning of the year, Debion Company estimated the following:

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.
2. Calculate the overhead applied to production in March.