Homework Answers
Ans: Option C , $ 1,330,000
Predetermined overhead rate = total overhead cost / labor cost
= 300,000 / 200,000
= 1.5
actual costs
direct material = $ 630,000
direct labor = $ 280,000
applied overhead = actual direct labor cost * predetermined overhead rate
= $ 280,000 * 1.5
= $ 420,000
Total cost = $ 1,330,000
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