The Law Firm,Keen and Sholer,assigns Overhead to Clients Based on Direct

question 6

Multiple Choice

The law firm,Keen and Sholer,assigns overhead to clients based on direct labor hours using normal costing.During June,they compiled the following information regarding hours worked and costs:
$$\begin{array} { l l } \text { Actual direct labor hours } & 900 \text { hours } \\\text { Actual overhead costs } & \$ 7,200 \\\text { Estimated direct labor hours } & 1,000 \text { hours } \\\text { Estimated overhead costs } & \$ 9,000\end{array}$$
The amount of applied overhead for June is:

• A)$8,100
• B)$7,200
• C)$6,480
• D)$9,000
• E)None of the answer choices is correct.

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