Transcribed Image Text: 29) Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $150,000, direct professional labor

Transcribed Image Text: 29) Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct
professional labor hours. Overhead was estimated to be $150,000, direct professional
labor hours were estimated to be 15,000, and direct professional labor cost was projected
to be $225,000. During the year, Amour incurred actual overhead costs of S146,000,
actual direct professional labor hours of 14,500, and actual direct labor cost of $222,000.
By year-end, the firm’s overhead was:
A) $1,000 overapplied.
B) $5,000 underapplied.
C) $4,000 overapplied.
D) $1,000 underapplied.
E) $4,000 underapplied.

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