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Aleman uses a traditional predetermined overhead rate system to allocate overhead to its jobs using direct labor hours. Its t
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Answer #1

Answer: A. $897,000

.

Overhead rate = Estimated overhead / Estimated direct labor hours

= $975,000 / 100,000

= $9.75 per hour

.

Amount of overhead applied = Actual direct labor hours x Overhead rate

= 92,000 x $9.75

= 897,000

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