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The following cost data relate to the office overhead costs of the Carlson Tax Advisory during the just-completed year: Office rent Office supplies Utilities, office Salary, office manager Salary, receptionist Software licensing fees Total overhead costs $28,300 6,450 15,700 58,900 37,620 Depreciation-office equipment 12,400 25,300 Other miscellaneous expenses 32,150 $216,820 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. Answer: $10,680

The following cost data relate to the office overhead costs of the Carlson Tax Advisory during the just-completed year: Office rent Office supplies Utilities, office Salary, office manager Salary, receptionist Software licensing fees Total overhead costs $28,300 6,450 15,700 58,900 37,620 Depreciation-office equipment 12,400 25,300 Other miscellaneous expenses 32,150 $216,820 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. Answer: $10,680

Cornerstones of Cost Management (Cornerstones Series)
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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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 Utilities, office Salary, office manager Salary, receptionist Software licensing fees Total overhead costs $28,300 6,450 15,700 58,900 37,620 Depreciation-office equipment 12,400 25,300 Other miscellaneous expenses 32,150 $216,820 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. Answer: $10,680
Transcribed Image Text:The following cost data relate to the office overhead costs of the Carlson Tax Advisory during the just-completed year: Office rent Office supplies Utilities, office Salary, office manager Salary, receptionist Software licensing fees Total overhead costs $28,300 6,450 15,700 58,900 37,620 Depreciation-office equipment 12,400 25,300 Other miscellaneous expenses 32,150 $216,820 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. Answer: $10,680
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