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Overhead is applied (allocated) based on direct labor cost Overhead application (allocation) rate is 125% Estimated direct labor cost for Job AA1 is $19,200 Actual

Overhead is applied (allocated) based on direct labor cost Overhead application (allocation) rate is 125% Estimated direct labor cost for Job AA1 is $19,200 Actual direct labor cost for Job AA1 is $20,000 How much overhead should Cats Company allocate to Job AA1?

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