Question - Hancock Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Hancock estimated total overhead of $276,900; materials of $403,000 and direct labor of $213,000. During the year Hancock incurred $411,000 in materials costs, $412,500 in overhead costs and $217,000 in direct labor costs. Compute the amount of overhead applied to jobs during the year.
$423,750.
$412,500.
$282,100.
$276,900.
$412,490.