212. CSO: 1C3b LOS: 1C3g
Patterson Corporation expects to incur $70,000 of factory overhead and $60,000 of
general and administrative costs next year. Direct labor costs at $5 per hour are expected
to total $50,000. If factory overhead is to be applied per direct labor hour, how much
overhead will be applied to a job incurring 20 hours of direct labor?
a. $28.
b. $120.
c. $140.
d. $260.
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