Calculate the predetermined overhead rate

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Reference no: EM13789281

Ben Whitney manufactures holiday decorations. Overhead is applied to products on the basis of direct labor hours. Last year, total overhead costs were expected to be $85,000. Actual overhead costs totaled $88,750 for 8,400 actual hours. At the end of the year, overhead was underapplied by $4,750.

Required:

A. Calculate the predetermined overhead rate.

$ per hour

B. How much overhead should be applied to a job that was completed in three direct labor hours?

Reference no: EM13789281

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