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) $90,000.
C) $20,000.
D) $70,000.
E) $50,000.

Question

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The Answer of 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) $90,000.
C) $20,000.
D) $70,000.
E) $50,000.

Mesa Corp Allocates Overhead to Production on the Basis of Direct