Kcompany 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?

Overhead costs=$145

Explanation:

Since direct labor hours is used to allocate overhead costs, the allocate overhead costs can be expressed using direct labor hours. Consider the expression below;

Overhead costs= Constant(k)×Direct labor hours

where;

K-constant of proportionality to be determined

Direct labor hours=80,000 hours

Overhead costs=$2,900,000

Substituting in the expression above;

2,900,000=K×80,000

K=2,900,000/80,000

K=36.25

With k=36.25, we can calculate the overhead costs given direct labor hours:

direct labor hours=4 hours

Overhead costs= Constant(k)×Direct labor hours

Replacing;

Overhead costs=(36.25×4)=$145

Overhead costs=$145

steering wheels are always situated on the left side of the car.

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explanation: