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Answer the Following Question(s)using the Information Below

Question 74

Multiple Choice

Answer the following question(s) using the information below.A law office employs full-time attorneys and five paraprofessionals.For the current year indirect costs were budgeted at $225,000, but actually amounted to $350,000.Direct and indirect costs are applied on a professional labour-hour basis which includes both attorney and paraprofessional hours.Total budgeted labour-hours were 25,000; however, actual labour-hours were 30,000.
-What is the overhead applied to jobs if the law office uses normal costing?


A) $225,000
B) $350,000
C) $291,667
D) $270,000
E) $420,000

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