MC Qu. 152 Adams Manufacturing allocates... Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $364,800; materials of $418,000 and direct labor of $228,000. During the year Adams incurred $426,000 in materials costs, $415,400 in overhead costs and $232,000 in direct labor costs. Compute the overhead application rate.
