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.

1. What is the overhead applied to jobs if the law office uses normal costing?

2. What is the overhead applied to a 500 hour job if the law office uses actual costing?