If Omar Corporation applies overhead to jobs on the basis of direct labor-hours and Job 3 took 120 hours, how much overhead should be applied to that job?

A) $960
B) $360
C) $528
D) $288

Direct Labor-Hours

A measure of the amount of time workers spend on production, often used as a basis for allocating overhead costs in traditional costing systems.

Applies Overhead

Refers to the method by which manufacturing overhead costs are assigned to products or job orders based on a predetermined rate or basis.