A Public Accounting Firm Employs 10 Full-Time Professionals Who Provide

question 40

Essay

A public accounting firm employs 10 full-time professionals who provide services to clients.All professional labour compensation is traced directly to clients on a per professional labour-hour basis.Any other costs are included in a single indirect-cost pool (same as overhead)and allocated to individual clients according to billable professional labour-hours.
Operating costs and data for the year included the following:
$\begin{array}{|l|r|r|}\hline & \text { Estimated } & \text { Actual } \\\hline \text { Overhead (indirect) costs } & \$ 1,000,000 & \$ 1,200,000 \\\hline \begin{array}{l}\text { Number of billable } \\\text { professional labour-hours }\end{array} & 40,000 & 50,000 \\\hline \begin{array}{l}\text { Total professional } \\\text { compensation }\end{array} & 750,000 & 750,000 \\\hline\end{array}$
Required:
a.By how much,if any,was the overhead cost underapplied or overapplied?
b.Prepare a summary journal entry to close any underapplied or overapplied overhead cost to a Cost of Services Provided account.
c.Explain qualitatively and quantitatively (in as much detail as possible)the source(s)of any underapplied or overapplied overhead cost.

Examine the role and impact of raw materials in global trade.

Distinguish between different types of markets and economic concepts relevant to global trade.

Understand the roles and strategies of multinational corporations in global markets.

Analyze the ethical and socioeconomic implications of globalization.

---

Definitions:

Phagocytosis

A cellular process where cells engulf and digest particles or other cells.

Inflammation

A biological response to harmful stimuli, such as pathogens or damaged cells, leading to redness, swelling, pain, and heat in the affected tissues.

Hapten

Small molecule that binds to a large molecule; together they stimulate the specific immune system.

Allergic Reaction

An immune response to a substance that is normally harmless, resulting in symptoms like itching, swelling, and difficulty breathing.