5) If the manufacturing overhead costs applied to jobs worked on were less than the actual manufacturing costs incurred during a period, overhead is said to be a. underapplied b. overapplied c. in error d. prepaid 6) Skyline Florists uses an activity-based costing system to compute the cost of making floral bouquets and delivering the bouquets to its commercial customers. Company personnel who earn $180,000 typically perform both tasks; other firm-wide overhead is expected to total $70,000. These costs are allocated as follows: Bouquet Production Delivery Other Company personnel 60 % 30 % 10 % Other overhead 50 % 35 % 15 % Skyline anticipates making 20,000 bouquets and 4.000 deliveries in the upcoming year. What is the cost of the company personnel's wages and salaries and other overhead that would be charged to each bouquet? (your answer should be under $10.00 per bouquet) 7) Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $150,000 and direct professional labor hours were estimated to be 15,000. For the year, $146,000 of overhead costs are incurred and 14,500 direct professional labor hours are used. Instructions (a) Compute the predetermined manufacturing overhead rate that was calculated at the beginning of the year. (b) Compute the total amount of overhead that was actually applied during the year (using the predetermined rate that you calculated in a above), keeping in mind that 14,500 direct professional labor hours were used. (c) Compare the amount of overhead that was applied during the year with the actual incurred overhead costs. What is the amount of under - or overapplied overhead at December 31? (please identify both the amount and that it was "under-applied" or "over-applied")