7 Sour Apple Company applies overhead to jobs on the basis of 150% of direct labour cost. If Job 52 shows $12,000 of manufacturing overhead applied, how much was the direct labour cost on the job? Select one: a. $10,000 b. $8,000 c. $12,500 d. $11,250

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.