Kaplan Consulting applies overhead to client accounts based on direct labor hours. For the month of October, the company estimated overhead costs to be $9,000 based on estimated direct labor hours of 1,000. The company actually incurred 900 direct labor hours and $7,200 of overhead. If Kaplan uses a normal costing system, how much overhead was applied in October?

Select one:

a. $8,100

b. $7,200

c. $6,480

d. $9,000