Predetermined Overhead Rate, Overhead Application At the beginning of the year, Estes Company estimated the following costs: Overhead $450,000 Direct labor cost 600,000 Estes uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of September, direct labor cost was $46,300. Required: 1. Calculate the predetermined overhead rate for the year. Enter the percentage as a whole number. % of direct labor cost 2. Calculate the overhead applied to production in September.
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Predetermined Overhead Rate, Overhead Application
At the beginning of the year, Estes Company estimated the following costs:
| Overhead | $450,000 |
| Direct labor cost | 600,000 |
Estes uses normal costing and applies overhead on the basis of direct labor cost. (Direct labor cost is equal to total direct labor hours worked multiplied by the wage rate.) For the month of September, direct labor cost was $46,300.
Required:
1. Calculate the predetermined overhead rate for the year. Enter the percentage as a whole number.
% of direct labor cost
2. Calculate the overhead applied to production in September.
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