Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $207,000, direct professional labor hours were estimated to be 23,000, and direct professional labor cost was projected to be $414,000. During the year, Armour incurred actual overhead costs of $203,700, actual direct professional labor hours of 22,500, and actual direct labor costs of $302,000. By year-end, the firm's overhead was

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter4: Job Order Costing
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Armour, Inc., an advertising agency, applies
overhead to jobs on the basis of direct
professional labor hours. Overhead was
estimated to be $207,000, direct professional
labor hours were estimated to be 23,000, and
direct professional labor cost was projected to
be $414,000. During the year, Armour incurred
actual overhead costs of $203,700, actual
direct professional labor hours of 22,500, and
actual direct labor costs of $302,000.
By year-end, the firm's overhead was
Transcribed Image Text:Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $207,000, direct professional labor hours were estimated to be 23,000, and direct professional labor cost was projected to be $414,000. During the year, Armour incurred actual overhead costs of $203,700, actual direct professional labor hours of 22,500, and actual direct labor costs of $302,000. By year-end, the firm's overhead was
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