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Dream House Builders, Inc. applies overhead by linking it to

Dream House Builders, Inc. applies overhead by linking it to direct labor. At the start of the current period, management

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Dream House Builders, Inc. applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of $20,000. On January 31, the direct labor for this job equals $2,700. Complete the necessary January 31 journal entry to apply overhead by selecting the account names and dollar amounts from the drop-down menus.