K Company Estimates That Overhead Costs for the Next Year

Multiple Choice

K Company estimates that overhead costs for the next year will be $2,900,000 for indirect labor and $800,000 for factory utilities.The company uses direct labor hours as its overhead allocation base.If 80,000 direct labor hours are planned for this next year,how much overhead would be assigned to a product requiring 4 direct labor hours?

A) $46.25
B) $36.25
C) $185.00
D) $145.00
E) None of the choices