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

question 14

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:
$$\begin{array} { l l } \text { Actual direct labor hours } & 900 \text { hours } \\\text { Actual overhead costs } & \$ 7,200 \\\text { Estimated direct labor hours } & 1,000 \text { hours } \\\text { Estimated overhead costs } & \$ 9,000\end{array}$$
For June,overhead was:

• A)$720 overapplied.
• B)$720 underapplied.
• C)$900 underapplied.
• D)$900 overapplied.
• E)None of the answer choices is correct.

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Definitions:

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