Answer:
The applied factory overhead cost is $1,875,000
Step-by-step explanation:
Overhead cost = $1,500,000 at activity base of 200,000
We assume that the overhead is directly proportional to the activity base;
The cost per direct labor = $1,500,000/200,000 = $7.5
Therefore at actual labor hours of 250,000, the factory overhead cost is therefore = $7.5 × 250000 = $1,875,000.
