Thompson company estimates that total factory overhead costs will be $500k for the year. Direct labor hours are estimated to be $200k. For Thompson Company(a) determine the predeterimined factory overhead rate,(b) determine the amount of overhead applied

The predetermined overheard rate is:

\text{\frac{estimated\ annual\ overhead\ costs}{annual\ estimated\ activity\ base}}

Once you have that rate, it will be used for the entire year. To apply, you multiply your rate by actual activity base for that month.