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Problem 1 - 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 -
Calculate the predetermined overhead rate for Debion.
Calculate the overhead applied to production in March.
Problem 2 - At the beginning of the year, Han Company estimated the following: Han uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 6,950. By the end of the year, Han showed the following actual amounts: Assume that unadjusted Cost of Goods Sold for Han was $927,000.
Calculate the predetermined overhead rate for Han.
Calculate the overhead applied to production in January.
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