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. $ per direct labor hour 2. Calculate the overhead applied to production in March. $
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. $ per direct labor hour 2. Calculate the overhead applied to production in March. $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculating the Predetermined
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.
$ per direct labor hour
2. Calculate the overhead applied to production in March.
$
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