Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the year, Debion Company estimated the following: Overhead $569,700 Direct labor hours" 63,250 Debion uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 13,915. Required: 1. Calculate the predetermined overhead rate for Debion. Round your answer to the nearest cent. 9.007 X 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. 125,334 X Feedback Check My Work 1. Predetermined overhead rate is an estimate based on dividing the estimated overhead costs by the estimated activity level. 2. Multiply overhead rate by the associated driver.

Cornerstones of Cost Management (Cornerstones Series)
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Chapter4: Activity-based Costing
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Problem 30P: Primera Company produces two products and uses a predetermined overhead rate to apply overhead....
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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
$569,700
Direct labor hours"
63,250
Debion uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct
labor hours were 13,915.
Required:
1. Calculate the predetermined overhead rate for Debion. Round your answer to the nearest cent.
9.007 X 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.
125,334 X
Feedback
Check My Work
1. Predetermined overhead rate is estimate based on dividing the estimated overhead costs by the
estimated activity level.
2. Multiply overhead rate by the associated driver.
Transcribed Image Text:Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the year, Debion Company estimated the following: Overhead $569,700 Direct labor hours" 63,250 Debion uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 13,915. Required: 1. Calculate the predetermined overhead rate for Debion. Round your answer to the nearest cent. 9.007 X 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. 125,334 X Feedback Check My Work 1. Predetermined overhead rate is estimate based on dividing the estimated overhead costs by the estimated activity level. 2. Multiply overhead rate by the associated driver.
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