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Armour, Incorporated, an advertising agency, applies overhead to jobs on the bas...
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Armour, Incorporated, an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $299,000, direct professional labor hours were estimated to be 23,000, and direct professional labor cost was projected to be $368,000. During the year, Armour incurred actual overhead costs of $293,500, actual direct professional labor hours of 22,500, and actual direct labor cost of $231,000. By year-end, the firm's overhead was:
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