Summerlin Law Offices Applies Overhead to Clients Based on Direct

question 51

Multiple Choice

Summerlin Law Offices applies overhead to clients based on direct labour hours.The office manager determined that overhead will be applied at a rate of $25 per direct labour hour.The static budget for the month of November showed an estimated 2500 direct labour hours would be incurred.During November,2800 direct labour hours were actually incurred and actual overhead costs were $58 800.What should be the total overhead cost according to the firm's flexible budget for November?

• A) $70 000
• B) $58 800
• C) $62 500
• D) $52 500

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