Deltan Corp

question 20

Multiple Choice

Deltan Corp. allocates overhead to production on the basis of direct labor costs. Deltan's total estimated overhead is $450,000 and estimated direct labor is $180,000. Determine the amount of overhead to be allocated to finished goods inventory if there is $20,000 of total direct labor cost in the jobs in the finished goods inventory.

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

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