Reference no: EM132533887
Question 1: Media, 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, Media incurred actual overhead costs of $203,700, actual direct professional labor hours of 22,500, and actual direct labor cost of $302,000. By year-end, the firm's overhead was:
Group of answer choices
Option A $1,200 underapplied.
Option B $1,200 overapplied.
Option C $3,300 underapplied.
Option D $3,300 overapplied.
Option E $4,500 underapplied.
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