A company’s predetermined overhead rate is 150% of its direct labor costs. How much overhead is applied to a job that requires total direct labor costs of $30,000?

a. $15,000

d. $60,000

b. $30,000

e. $75,000

c. $45,000 A company uses direct labor costs to apply overhead. Its production costs for the period are: direct materials,

$45,000; direct labor, $35,000; and overhead applied,

$38,500. What is its predetermined overhead rate?

a. 10%

d. 91%

b. 110%

e. 117%

c. 86%