Aronson & Associates LLP
Aronson & Associates LLP, an accounting firm, assigns overhead to clients based on direct labour hours. The following information is available for the month of March:
$\begin{array}{ll}
\text { Estimated direct labour hours } & 4000 \text { hours } \
\text { Estimated overhead costs } & \$ 8000 \
\text { Actual direct labour hours } & 4200 \text { hours } \
\text { Actual overhead costs } & \$ 8190
\end{array}$

-The amount of applied overhead for March will be:

Question

Aronson & Associates LLP
Aronson & Associates LLP, an accounting firm, assigns overhead to clients based on direct labour hours. The following information is available for the month of March:
$\begin{array}{ll}
\text { Estimated direct labour hours } & 4000 \text { hours } \
\text { Estimated overhead costs } & \$ 8000 \
\text { Actual direct labour hours } & 4200 \text { hours } \
\text { Actual overhead costs } & \$ 8190
\end{array}$

-The amount of applied overhead for March will be:

Quizplus · Accepted Answer

The overhead rate is calculated as estimated overhead costs divided by estimated direct labour hours: $8000 / 4000 hours = $2 per hour. Applied overhead is then calculated using actual direct labour hours: 4200 hours * $2 per hour = $8400.

Aronson & Associates LLP Aronson & Associates LLP, an Accounting

Aronson & Associates LLP
Aronson & Associates LLP, an Accounting