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Alderberry kecording Inc. is a small audio recording studio. the company handles work tor advertising agencies-primarily tor radio ads-and has a few singers and bands as clients Alderberry Recording handles all aspects of recording, from editing to making a digital master from which CDs can be copied. The competition in the audio recording industry has always been tough, but it has been getting even tougher over the last several years. The studio has been losing customers to newer studios that are equipped with more up-to-date equipment and are able to offer very attractive prices and excellent service. Summary data concerning the last two years of operations follow 2013 2814 Estimated hours of studio service Estimated studio overhead cost Actual hours of studio service provided Actual studio overhead cost incurred Hours of studio service at capacity 750 90,000 $99,000 $99,000 $90,006 1,900 980 1,800 1,800 The company applies studio overhead to recording jobs on the basis of the hours of studio service provided For example, 30 hours of studio time were required to record, edit, and master the Fire music CD for a local band All of the studio overhead is fixed, and the actual overhead cost incurred was exactly as estimated at the beginning of the year in both 2013 and 2014 Required 1. Alderberry Recording computes its predet overhead and the estimated hours of studio service for the year How much overhead would have been applied to the Fire job if it had been done in 20139 In 2014 By how much would overhead have been uniderapplied or overapplied in 20133 In 2014 g of each year based on the estimated studio Prev4

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