Reference no: EM132502738

CLAW Corporation is a manufacturer of industrial equipment, located in Toronto, Ontario. CLAW has a standard costing system based on direct labour hours (DLHs) as the measure of activity.

Data from the company's flexible budget for manufacturing overhead are given below:

Denominator Level of Activity                                          9,000 DLHs

Overhead Costs at the Denominator Activity Level:

Variable Overhead Cost                                                      $90,700
Fixed Overhead Cost                                                          $102,800
The following data pertains to operations for the most recent period:

Actual Hours                                                                 7,800 DLHs
Standard Hours Allowed for the Actual Output                     7,765 DLHs
Actual Total Variable Overhead Cost                                    $54,210
Actual Total Fixed Overhead Cost                                   $100,200

Required:

Question 1. What was the total predetermined overhead rate?

Question 2. How much overhead was applied to products during the period?