Canfield Construction applies overhead to its projects at a rate of $88 per direct labor hour. Laborers are paid an average rate of $40 per hour. The Jefferson Apartments project was charged a total of $3,200,000 in direct materials and $680,000 in direct labor costs.
Overhead applied to the Jefferson Apartments project amounted to:
$680,000.
$2,520,000.
$1,496,000.
Some other amount.