An audit firm's 10 full-time professionals who provide services to clients. All professional labour compensation is traced directly to clients on a per professional labour-hour basis. Any other costs are included in a single indirect-cost pool (same as overhead) and allocated to individual clients according to billable professional labour hours. Operating costs and data for the year included the following:

	Estimated	Actual
Overhead (indirect) costs	$1,000,000	$1,200,000
Number of billable professional labour-hours	40,000	50,000
Total professional compensation	750,000	750,000

a. By how much, if any, was the overhead cost underapplied or overapplied? b. Prepare a summary journal entry to close any underapplied or overapplied overhead cost to a Cost of Services Provided account. c. Is the treatment you completed in (b) consistent with accounting standards? Explain, citing the specific standard if possible. c. Explain qualitatively and quantitatively (in as much detail as possible) the source(s) of any underapplied or overapplied overhead cost.