Question: Kaplan Consulting applies overhead to client accounts based on direct labor hours. For the month of October, the company estimated overhead costs to be $9,000

Kaplan Consulting applies overhead to client accounts based on direct labor hours. For the month of October, the company estimated overhead costs to be $9,000 based on estimated direct labor hours of 1,000. The company actually incurred 900 direct labor hours and $7,200 of overhead. If Kaplan uses a normal costing system, how much overhead was applied in October? Select one:

a. $6,480 b. $9,000 c. $7,200 d. $8,100

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