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Exercise 5-31 Calculating the Predetermined Overhead Rate, Applying Overhead to Production
At the beginning of the year, DebionCompany estimated the following
Overhead $522,900Direct labor hours 83,000
Debionuses 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.2. Calculate the overhead applied to production in March.