Millenium Manufacturing Is Considering Two Methods for Applying Overhead $\quad \$ 871,875$

Millenium Manufacturing is considering two methods for applying overhead. Estimated data for the next year, 2013, follows. Estimated direct labor costs $\quad \$ 871,875$
Estimated direct labor hours $\quad 90,000$
Estimated overhead costs $\quad \$ 558,000$ 1. What would be the overhead application rate based on direct labor costs?
2. What would be the overhead application rate based on direct labor hours?
3. If a job requires 650 hours of direct labor, what would be the amount of overhead applied to the job using the rate based on direct labor hours?

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1. 64%; 2....

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