If the predetermined overhead rate is $2.00 per direct labor hour and actual activity is 5,000 hours, overhead applied is:

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Multiple Choice

If the predetermined overhead rate is $2.00 per direct labor hour and actual activity is 5,000 hours, overhead applied is:

Explanation:
Overhead applied is found by multiplying the predetermined overhead rate by the actual activity base used. Here, the rate is $2.00 per direct labor hour and the actual activity is 5,000 hours. Multiply: 2.00 × 5,000 = 10,000. So overhead applied is $10,000. The other amounts would require a different rate or a different number of hours.

Overhead applied is found by multiplying the predetermined overhead rate by the actual activity base used. Here, the rate is $2.00 per direct labor hour and the actual activity is 5,000 hours. Multiply: 2.00 × 5,000 = 10,000. So overhead applied is $10,000. The other amounts would require a different rate or a different number of hours.

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