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Mesa Corp. allocates overhead to production on the basis of direct labor costs. Mesas total estimated overhead is $570,000 and estimated direct labor is $190,000.
Mesa Corp. allocates overhead to production on the basis of direct labor costs. Mesas total estimated overhead is $570,000 and estimated direct labor is $190,000. Determine the amount of overhead applied to a job which used $21,000 of direct labor.
Multiple Choice
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$7,000.
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$21,000.
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$84,000.
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$63,000.
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$105,000.
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