Exercise 5-31 Calculating the Predetermined Overhead Rate, Applying Overhead to Production At the beginning of the year, Kester Company estimated the following:

Overhead $621,600 Direct labor hours 84,000

Kester uses normal costing and applies overhead on the basis of direct labor hours. For the month of March, direct labor hours were 7,400.

Required:

1. Calculate the predetermined overhead rate for Kester.

2. Calculate the overhead applied to production in March.