Job Order Cost Accounting for a Service Company The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July: July 3. Charged 490 hours of professional (lawyer) time to the Obsidian Co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $17,200. 14. Charged 330 hours of professional time for the Obsidian trial at a rate of $300 per hour. 18. Received invoice from consultants Wadsley and Harden for $47,200 for expert testimony related to the Obsidian trial. 27. Applied office overhead at a rate of $40 per professional hour charged to the Obsidian case. 31. Paid administrative and support salaries of $23,300 for the month. 31. Used office supplies for the month, $7,900. 31. Paid professional salaries of $166,300 for the month. 31. Balled Obsidian $308,300 for successful defense of the case. July 18 Work in Process Accounts Payable 47,200 July 27 40x 40x July 31 Admin. sal. Office Overhead 23,300] 23,300 July 31 Supplies Office Overhead 7,900 Supplies 7,900 July 31 Prof. sal. July 31 Billed Accounts Receivable Fees Earned 308,300 \begin{tabular}{l} July 31 Cost \\ Wost of Services in Process \\ \hline \end{tabular} b. How much office overhead is over- or underapplied? Enter your answer as a positive number. c. Determine the gross profit on the Obsidian case, assuming that over-or underapplied office overhead is closed monthly to cost of services