Media, inc., an advertising agency, applies overhead to jobs on the basis of direct professional labor hours. overhead was estimated to be $152,000, direct professional labor hours were estimated to be 19,000, and direct professional labor cost was projected to be $285,000.
during the year, media incurred actual overhead costs of $149,300, actual direct professional labor hours of 18,500, and actual direct labor cost of $279,000.

by year-end, the firm's overhead was:

a)$1,300 underapplied.

b)$1,300 overapplied.

c)$2,700 underapplied.

d)$2,700 overapplied.

e)$4,000 underapplied.

Listed below are several transactions that took place during the first two years of operations for the law firm of pete, pete, and roy.year 1 year 2amounts billed to clients for services rendered $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.required: 1. & 3. calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.2. prepare an income statement for each year according to the accrual accounting model.