Fine & Associates is an interior decorating firm located in Brampton, Ontario. The following costs were incurred in a project to redecorate the mayor's offices: $\begin{array}{lccc}
\text { Direct material } & \$ 29,000 \
\text { Direct professional labour } & 42,000
\end{array}$
The firm's budget for the year included the following estimates: $\begin{array}{lccc}
\text { Budgeted overhead} & \$ 800,000 \
\text { Budgeted direct professional labour} & 640,000
\end{array}$
Overhead is applied to contracts by using a predetermined overhead rate that is based on direct professional labour cost. Actual professional labour during the year was $655,000 and actual overhead was $793,000.
Required:
A. Determine the total cost to redecorate the mayor's offices.
B. Calculate the under - or overapplied overhead for the year. Be sure to label your answer

Question

Fine & Associates is an interior decorating firm located in Brampton, Ontario. The following costs were incurred in a project to redecorate the mayor's offices: $\begin{array}{lccc}
  \text { Direct material } & \$ 29,000 \
 \text { Direct professional labour } & 42,000
\end{array}$
 The firm's budget for the year included the following estimates: $\begin{array}{lccc}
  \text { Budgeted overhead} & \$ 800,000 \
 \text { Budgeted direct professional labour} & 640,000
\end{array}$
 Overhead is applied to contracts by using a predetermined overhead rate that is based on direct professional labour cost. Actual professional labour during the year was $655,000 and actual overhead was $793,000.
Required:
A. Determine the total cost to redecorate the mayor's offices.
B. Calculate the under - or overapplied overhead for the year. Be sure to label your answer

Quizplus · Accepted Answer

The Answer of Fine & Associates is an interior decorating firm located in Brampton, Ontario. The following costs were incurred in a project to redecorate the mayor's offices: $\begin{array}{lccc}
  \text { Direct material } & \$ 29,000 \
 \text { Direct professional labour } & 42,000
\end{array}$
 The firm's budget for the year included the following estimates: $\begin{array}{lccc}
  \text { Budgeted overhead} & \$ 800,000 \
 \text { Budgeted direct professional labour} & 640,000
\end{array}$
 Overhead is applied to contracts by using a predetermined overhead rate that is based on direct professional labour cost. Actual professional labour during the year was $655,000 and actual overhead was $793,000.
Required:
A. Determine the total cost to redecorate the mayor's offices.
B. Calculate the under - or overapplied overhead for the year. Be sure to label your answer

Fine & Associates Is an Interior Decorating Firm Located in Brampton