Predetermined Overhead Rate and Applied Overhead

Bostock's Building Blocks uses number of minutes in its firing oven to allocate overhead costs to products. In a typical month, 5,000 firing minutes are expected, and average monthly overhead costs are $3,500. During January, 4,800 firing minutes were used and total overhead costs were $2,750.

Required:

Compute Bostock's predetermined overhead rate and the amount of applied overhead for January. Round your answers to the nearest cent.

Predetermined overhead rate	$ per minute
Amount of applied overhead	$