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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. $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
$ per direct labor hour

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

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