Peterson Company is a manufacturing company in Canada. The Work in Process Inventory account of Peterson Company that uses an overhead rate based on direct labor cost has a $3,550 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $1,610 and direct labor cost of $870. Therefore, the amount of the applied overhead for Peterson Company is: Multiple Choice $2,480. $870. O $2,680. $1.940. $1.070