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  1. business
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  3. elemental designs employs 10 full-time employees a

Elemental Designs employs 10 full-time employees and 10 trainees. Each full-time employee is ...

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Accounting

Elemental Designs employs 10 full-time employees and 10 trainees. Each full-time employee is
salaried at $85,000, whereas trainee salaries are just $28,000. Overhead costs are applied on a
professional labor-hour basis that includes a mixture of both employee and trainee hours. When a
normal costing system is used, jobs using proportionately more full-time employees than trainees
will likely
be billed accurately for actual resources used
result in an underallocation of direct costs
be overbilled for actual resources used
be underbilled for actual resources used
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