Brainpower Pty Ltd is an advertising agency that uses a job costing system. Brainpower applies overhead...
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Brainpower Pty Ltd is an advertising agency that uses a job costing system. Brainpower applies overhead to jobs based on direct professional labour hours. At the beginning of the year, overhead was estimated to be $75 000, direct professional labour hours were estimated to be 15000, and direct professional labour cost was projected to be $225 000. During the year Brainpower incurred actual overhead of $80 000, actual direct labour hours of 14 500 and actual direct labour cost of $222 000. What was Brainpower's overapplied or underapplied overhead during the year? Select one: a. $5000 overapplied b. $5000 underapplied c. $7500 overapplied d. $7500 underapplied Brainpower Pty Ltd is an advertising agency that uses a job costing system. Brainpower applies overhead to jobs based on direct professional labour hours. At the beginning of the year, overhead was estimated to be $75 000, direct professional labour hours were estimated to be 15000, and direct professional labour cost was projected to be $225 000. During the year Brainpower incurred actual overhead of $80 000, actual direct labour hours of 14 500 and actual direct labour cost of $222 000. What was Brainpower's overapplied or underapplied overhead during the year? Select one: a. $5000 overapplied b. $5000 underapplied c. $7500 overapplied d. $7500 underapplied
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Solution Estimated overheads 75000 Estimated direct professional labor hours 15000 Predetermined ... View the full answer
Related Book For
Cost Management Measuring Monitoring and Motivating Performance
ISBN: 978-0470769423
2nd Canadian edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
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