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:

Question

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:

Quizplus · Accepted Answer

Applied overhead = Estimated overhead costs x (Actual direct labor hours / Estimated direct labor hours)= $9,000 x (900 hours / 1,000 hours)= $8,100

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