ASAP is a marketing research company that uses Activity Based Costing. The following budgeted data for each of the activity cost pools is provided for the year 2019:

Estimated Expected Use of

Activity Cost Pools Overhead Cost Drivers per Activity

Market Research $ 31,500 900 research hours

Client Meetings $1,200,000 6,000 professional hours

Preparing Research Papers $500,000 40,000 pages

During 2019 ASAP experienced 5,000 research hours, prepared 15,000 document pages, and 12,000 professional hours.

Instructions

A) Compute the total overhead applied during 2019.

B) How would you know if the overhead was under applied or over applied?