. Using normal costing, what would be the total charge for removing snow from a mall parking lot that took four hours to clear? B. If actual overhead costs are $215,000 and actual hours worked are 11,000, is overhead overapplied or underapplied?

The Coastal Landscaping and Snow Removal company uses normal costing to assign overhead costs to the firm’s various jobs. Labor is charged to jobs at $25 per hour and for the upcoming winter session, overhead is estimated at $200,000 for $10,000 hours of activity.

A. Using normal costing, what would be the total charge for removing snow from a mall parking lot that took four hours to clear?
B. If actual overhead costs are $215,000 and actual hours worked are 11,000, is overhead overapplied or underapplied?

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