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Alita Associates is an accounting firm that provides audit and tax services to its clients. Each audit is considered a "job" for the firm, just like a manufacturing company considers a customer order as a "job." Alita has direct costs related to performing an Audit #230 as follows: • 7 hours of staff labor @ $91 per hour • 5 hours of assembly labor @$35 per hour • $57 of materials In addition, Alita Associates estimates its overhead related to the manufacture of audits to be $58,226 for the year. The company expects to do 10,838 audits for the year. The company also expects to use 53,452 staff hours for the year. If Alita allocates overhead to jobs based on staff hours, what is the total cost of Audit #230? "Hint, make a job order cost sheet for J 230. It should include materials, labor, and overhead. There are two types of labor here, but you will just add them up to get total labor for Job 230. Round each step to the nearest 2 decimal places. For your final answer, round to the nearest dollar.

Alita Associates is an accounting firm that provides audit and tax services to its clients. Each audit is considered a "job" for the firm, just like a manufacturing company considers a customer order as a "job." Alita has direct costs related to performing an Audit #230 as follows: • 7 hours of staff labor @ $91 per hour • 5 hours of assembly labor @$35 per hour • $57 of materials In addition, Alita Associates estimates its overhead related to the manufacture of audits to be $58,226 for the year. The company expects to do 10,838 audits for the year. The company also expects to use 53,452 staff hours for the year. If Alita allocates overhead to jobs based on staff hours, what is the total cost of Audit #230? "Hint, make a job order cost sheet for J 230. It should include materials, labor, and overhead. There are two types of labor here, but you will just add them up to get total labor for Job 230. Round each step to the nearest 2 decimal places. For your final answer, round to the nearest dollar.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alita Associates is an accounting firm that provides audit and tax services to its clients. Each audit is considered a "job" for the firm, just like a manufacturing company considers a customer order as a "job. Alita has direct costs related to performing an Audit #230 as follows: • 7 hours of staff labor @ $91 per hour • 5 hours of assembly labor @$35 per hour • $57 of materials In addition, Alita Associates estimates its overhead related to the manufacture of audits to be $58,226 for the year. The company expects to do 10,838 audits for the year. The company also expects to use 53,452 staff hours for the year. If Alita allocates overhead to jobs based on staff hours, what is the total cost of Audit #230? "Hint, make a job order cost sheet for Job 230. It should include materials, labor, and overhead. There are two types of labor here, but you will just add them up to get total labor for Job 230. Round each step to the nearest 2 decimal places. For your final answer, round to the nearest dollar.
Transcribed Image Text:Alita Associates is an accounting firm that provides audit and tax services to its clients. Each audit is considered a "job" for the firm, just like a manufacturing company considers a customer order as a "job. Alita has direct costs related to performing an Audit #230 as follows: • 7 hours of staff labor @ $91 per hour • 5 hours of assembly labor @$35 per hour • $57 of materials In addition, Alita Associates estimates its overhead related to the manufacture of audits to be $58,226 for the year. The company expects to do 10,838 audits for the year. The company also expects to use 53,452 staff hours for the year. If Alita allocates overhead to jobs based on staff hours, what is the total cost of Audit #230? "Hint, make a job order cost sheet for Job 230. It should include materials, labor, and overhead. There are two types of labor here, but you will just add them up to get total labor for Job 230. Round each step to the nearest 2 decimal places. For your final answer, round to the nearest dollar.
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