ACCT1350 Assignment # 2 Question 3 (10 Marks) McKenna Collins LLP public accounting firm employs 10 full-time professionals who provide services to clients. All professional Jabour compensation is traced directly to clients on a per professional labour hour basis. Any other costs are included in a single indirect-cost pool (same as overhead) and allocated to individual clients according to billable professional labour-hours Operating costs and data for the year included the following: Estimated $1,000,000 $1,200,000 Actual Overhead (indirect) costs Number of billable professional labour-hours Total professional compensation 40,000 50,000 750,000 750,000 Required: By how much, if any, was the overhead cost underapplied or overapplied? (4 Marks) b. Prepare a summary journal entry to close any underapplied or overapplied overhead cost to a Cost of Services Provided account. (2 Marks) Explain qualitatively and quantitatively (in as much detail as possible) the source(s) of any underapplied or overapplied overhead cost. (4 Marks) a. C