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Armour, Inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. Overhead was estimated to be $150,000, direct professional labor hours were estimated to be 15,000, and direct professional labor cost was projected to be $225,000. During the year, Armour incurred actual overhead costs of $146,000, actual direct professional labor hours of 14,500, and actual direct labor cost of $222,000. By year-end, the firm's overhead was: Multiple Choice $1,000 underapplied. $1,000 overapplied. $4,000 underapplied. X $4,000 overapplied. $5,000 underapplied. Flagler, Inc. disposes of under- or overapplied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $666,000 in a year when manufacturing overhead was underapplied by $16,100. If sales revenue totaled $1,840,000, determine (1) Flagler's adjusted cost of goods sold and (2) gross margin A. B. Adjusted Cost of Goods Sold $649,900 $649,900 $666,000 $682,100 $682,100 Gross Margin $1,174,000 $1,190, 100 $1,174,000 $1,157,900 $1,174,000 C. D. E. Multiple Choice X Choice A Choice B o Choice C When using normal costing, the total production cost of a job is composed of: Multiple Choice direct material and direct labor, only. direct material, direct labor, manufacturing overhead, and outlays for selling costs. direct material, direct labor, manufacturing overhead, and outlays for both selling and administrative costs. direct material, direct labor, and applied manufacturing overhead. X direct material, direct labor, and actual manufacturing overhead