 Hello, in this lecture, we're going to work some smaller test type problems problems that could be smaller to fit into a multiple choice type format. So first we have here company allocates overhead to production on the basis of direct labor hours at the beginning of the year company estimated total overhead of 345,600 materials of 406,000 and direct labor of 216,000 during the year company incurred 414,000 in material costs for 12,800 in overhead costs and 220,000 indirect labor costs compute the amount of overhead applied to jobs during the year. So what we have to do to understand this is the idea that we're going to come up with a predetermined overhead rate so that we can apply the overhead to the jobs as the jobs are going. So what we do that in order to do that we're going to use the numbers before the period at the beginning of the period in this case in order to come up with that rate and then use that in order to apply the overhead based on the direct labor. So at the beginning of the year the company estimated overhead to be