Summerlin Law Offices Applies Overhead to Clients Based on Direct

question 51

Multiple Choice

Summerlin Law Offices applies overhead to clients based on direct labour hours.The office manager determined that overhead will be applied at a rate of $25 per direct labour hour.The static budget for the month of November showed an estimated 2500 direct labour hours would be incurred.During November,2800 direct labour hours were actually incurred and actual overhead costs were $58 800.What should be the total overhead cost according to the firm's flexible budget for November?

• A) $70 000
• B) $58 800
• C) $62 500
• D) $52 500

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Definitions:

Mitochondrion

An organelle found in large numbers in most cells, involved in energy production.

Axons

Long nerve fibers that transmit signals from the body of a neuron to other cells.

Dendrites

The branched projections of a neuron that receive electrochemical signals from other neurons and conduct them toward the cell body.

Cell Wall

A rigid layer lying outside the plasma membrane of the cells of plants, fungi, and bacteria, providing structure and protection.