Mesa CorpAllocates Overhead to Production on the Basis of Direct Labor

question 187

Multiple Choice

Mesa Corp.allocates overhead to production on the basis of direct labor costs.Mesa's total estimated overhead is $450,000 and estimated direct labor is $180,000.Determine the amount of overhead applied to a job which used $20,000 of direct labor.

• A)$8,000.
• B)$20,000.
• C)$70,000.
• D)$50,000.
• E)$90,000.

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