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Lilium Inc., an automobile company, estimates a total factory overhead cost of $1,500,000 for the year and an activity base of 200,000 direct labor hours.

Lilium Inc., an automobile company, estimates a total factory overhead cost of $1,500,000 for the year and an activity base of 200,000 direct labor hours. If the actual labor hours are 250,000, the applied factory overhead is:

a.$1,675,000.

b.$1,875,000.

c.$1,750,000.

d.$1,950,000.

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