29) Armour, Inc., an advertising agency, applies overhead to jobs on the basis of directprofessional labor hours. Overhead was estimated to be $150,000, direct professionallabor hours were estimated to be 15,000, and direct professional labor cost was projectedto be $225,000. During the year, Amour incurred actual overhead costs of S146,000,actual direct professional labor hours of 14,500, and actual direct labor cost of $222,000.By year-end, the firm's overhead was:A) S1,000 overapplied.B) $5,000 underapplied.C) $4,000 overapplied.D) $1,000 underapplied.E) $4,000 underapplied.

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Description: 29) Armour, Inc., an advertising agency, applies overhead to jobs on the basis of directprofessional labor hours. Overhead was estimated to be $150,000, direct professionallabor hours were estimated to be 15,000, and direct professional labor cost w

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29) Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $150,000, direct professional labor hours were estimated to be 15,000, and direct professional labor cost was projecte to be $225,000. During the year, Amour incurred actual overhead costs of S146,000, actual direct professional labor hours of 14,500, and actual direct labor cost of $222,00 By year-end, the firm's overhead was: A) S1,000 overapplied. B) $5,000 underapplied. C) $4,000 overapplied. D) $1,000 underapplied. E) $4.000 underapplied.

29) Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $150,000, direct professional labor hours were estimated to be 15,000, and direct professional labor cost was projecte to be $225,000. During the year, Amour incurred actual overhead costs of S146,000, actual direct professional labor hours of 14,500, and actual direct labor cost of $222,00 By year-end, the firm's overhead was: A) S1,000 overapplied. B) $5,000 underapplied. C) $4,000 overapplied. D) $1,000 underapplied. E) $4.000 underapplied.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Saddle Inc. applies overhead on the basis of direct labor costs. The company estimates annual overhead costs will be $760,000 and annual direct labor costs will be $950,000. During February, Saddle works on two jobs: A16 and B17. Summary data concerning these jobs are as follows:Manufacturing Costs Incurred: Purchased $54,000 of raw materials on account. Factory labor $76,000, plus $4,000 employer payroll taxes. Manufacturing overhead exclusive of indirect materials and indirect labor $59,800. Assignment of Costs: Direct Materials: Job A16: $27,000, Job B17: $21,000 $3,000 Indirect Materials: $3000 Direct Labor: Job A16: $52,000, Job B17: $26,000 $2,000 Indirect labor: $2000 The company completed Job A16 and sold it on account for $150,000. Job B17 was only…
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I need the answer to 1b.
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