XYZ Company applies overhead to jobs using direct labor cost as an activity. For the current year, XYZ's estimated overhead was $144,000 while the actual overhead cost totaled $136,000. For the current year, XYZ's estimated direct labor cost was $240,000 and its actual direct labor cost amounted to $220,000. For the year, overhead was:

a. over-applied by $6,800
b. over-applied by $4,000
c. over-applied by $8,000
d. under-applied by $6,800
e. under-applied by $4,000
f. under-applied by $8,000

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers. b) may not accept the offer because it is considered lavish entertainment. c) must obtain written consent from batts brothers before accepting the offer.