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    McMann & Tate: Underapplied and Applied Cove

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    McMann & Tate, 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 costs were projected to be $225,000.

    During the year, McMann & Tate incurred actual overhead costs of $140,000, actual direct professional labor hours of 14,750 and actual direct labor costs of $222,000. Using the "Applied minus actual" formula, determine the firm's year end overhead.

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    https://brainmass.com/business/accounting/mcmann-tate-underapplied-applied-cove-207915

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    Overhead applied or underapplied overhead

    McMann & Tate, 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 ...

    Solution Summary

    This solution is comprised of a detailed explanation to determine the firm's year end overhead.

    $2.19

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