The following cost data relate to the office overhead costs of the Carlson Tax Advisory during the just-completed year: Office rent Office supplies $28,300 6,450 Utilities, office 15,700 Salary, office manager 58,900 Salary, receptionist 37,620 Depreciation-office equipment 12,400 Software licensing fees 25,300 Total overhead costs $216,820 Other miscellaneous expenses 32,150 The company uses a predetermined overhead rate to apply overhead costs to each tax job. The rate for the year was $7 per tax-preparer hour. A total of 32,500 tax preparer hours was recorded for the year. Compute the amount of under or overapplied overhead cost for the year.

The following cost data relate to the office overhead costs of the Carlson Tax Advisory during the just-completed year: Office rent Office supplies $28,300 6,450 Utilities, office 15,700 Salary, office manager 58,900 Salary, receptionist 37,620 Depreciation-office equipment 12,400 Software licensing fees 25,300 Total overhead costs $216,820 Other miscellaneous expenses 32,150 The company uses a predetermined overhead rate to apply overhead costs to each tax job. The rate for the year was $7 per tax-preparer hour. A total of 32,500 tax preparer hours was recorded for the year. Compute the amount of under or overapplied overhead cost for the year.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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