Teresa Summerlin manufactures hand-crafted pottery. Overhead is applied to products based on direct labor hours....
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Accounting
Teresa Summerlin manufactures hand-crafted pottery. Overhead is applied to products based on direct labor hours. At the beginning of the current year, Teresa estimated total overhead costs would be $30,000 and estimated direct labor hours would be 20,000. Actual overhead costs for the year totaled $36,000 for 18,000 actual direct labor hours.
Refer to the Teresa Summerlin information above. How much overhead was applied during the year?
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