RECOMMENDED!!McMann & Tate: Underapplied and Applied Cove

  

McMann & Tate: Underapplied and Applied CoveMc Mann & Tate, 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 costs were projected to be $225,000.
During the year, Mc Mann & Tate incurred actual overhead
costs of $140,000, actual direct professional labor hours of 14,750 and actual
direct labor costs of $222,000. Using the “Applied minus actual”
formula, determine the firm’s year end overhead.

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