Selling and administrative expenses $95,000 Direct materials used $265,000 Direct labor (25,000 hours) Factory overhead application rate $200,000 $16 per DLH Inventories Beginning Ending $50,000 $45,000 Direct materials 85,000 90,000 Work in process Finished goods 40,000 25,000 What is the cost of goods sold? O $880,000 O $865,000 O $875,000 O $860,000 Actual direct labor hours worked Budgeted overhead Budgeted direct labor hours Actual overhead costs incurred 75,000 $550,000 55,000 $650,000 If normal costing is used, the amount of overhead applied (based on labor hours) for the year is O $750,000 O $550,000 O $650,000 O $476,667