Direct Labor Costs and Overhead Mr Robbins medical records indicated that a total of 20 labor hours

Direct Labor Costs and Overhead

Mr Robbins medical records indicated that a total of 20
labor hours were directly used in providing his care The cost of the labor was
$380 It was expected before the beginning of the year that a total of 90,000
direct labor hours would be consumed by the health care org patients, at a
cost of $1,350,000 The total overhead to be allocated to patients was expected
to be $810,000 Determine the overhead to be assigned to Mr Robbins based on
the data given above First, assign overhead on a basis of direct labor hours;
and second, assign overhead on the basis of direct labor cost Why might the
result differ?

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