Aronson & Associates LLP
Aronson & Associates LLP, an Accounting

Multiple Choice

Aronson & Associates LLP
Aronson & Associates LLP, an accounting firm, assigns overhead to clients based on direct labour hours. The following information is available for the month of March:
$\begin{array}{ll}\text { Estimated direct labour hours } & 4000 \text { hours } \\\text { Estimated overhead costs } & \$ 8000 \\\text { Actual direct labour hours } & 4200 \text { hours } \\\text { Actual overhead costs } & \$ 8190\end{array}$

-By how much was overhead over- or underapplied for the month of March?

A) $210 overapplied
B) $400 overapplied
C) $190 underapplied
D) $390 underapplied