Answer the Following Question(s)using the Information Below

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 a 500 hour job if the law office uses actual costing?

A) $5,200
B) $4,500
C) $3,750
D) $5,000
E) $5,835

Correct Answer:

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