Summerlin Law Offices Applies Overhead to Clients Based on Direct

Multiple Choice

Summerlin Law Offices applies overhead to clients based on direct labor hours. The office manager determined that overhead will be applied at a rate of $25 per direct labor hour. The static budget for the month of November showed an estimated 2,500 direct labor hours would be incurred. During November, 2,800 direct labor hours were actually incurred and actual overhead costs were $58,800. What should be the total overhead cost according to the firm's flexible budget for November?

A) $70,000
B) $58,800
C) $62,500
D) $52,500