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Canfield Construction applies overhead to its projects at a rate of $65 per direct labor hour.Laborers are paid an average rate of $30 per hour.The Jefferson Apartments project was charged a total of $1,200,000 in direct materials and $450,000 in direct labor costs.
-Overhead applied to the Jefferson Apartments project amounted to:
A)$450,000.
B)$650,000.
C)$975,000.
D)$1,600,000.

Question

Quizplus · Accepted Answer

To find the overhead applied, first calculate the number of direct labor hours: $450,000 / $30 per hour = 15,000 hours. Then, multiply the direct labor hours by the overhead rate: 15,000 hours * $65 per hour = $975,000.

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