If 83000 direct labor hours are planned for this next year, Accounting Basics

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If 83000 direct labor hours are planned for this next year

Problem

K Company estimates that overhead costs for the next year will be $2,988,000 for indirect labor and $830,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 83,000 direct labor hours are planned for this next year, how much overhead would be assigned to a product requiring 4 direct labor hours?

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Accounting Basics: If 83000 direct labor hours are planned for this next year

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