Diaz and Associates incurred the following direct labor costs in completing tax services job for a client. Diaz applies overhead at 5- of direct labor cost Direct Labor on Tax Job Hours Used Partner Senior manager Staff accountants Direct labor type 14 110 Total direct labor cost Overhead Estimated Applied Overhead Total cost Hourly Rate $ 470 1. Determine the total cost of this tax services job. Estimated Cost 190 60 Hours used Hourly rate OH Base Labor Cost OH rate Total Cost

Diaz and Associates incurred the following direct labor costs in completing tax services job for a client. Diaz applies overhead at 5- of direct labor cost Direct Labor on Tax Job Hours Used Partner Senior manager Staff accountants Direct labor type 14 110 Total direct labor cost Overhead Estimated Applied Overhead Total cost Hourly Rate $ 470 1. Determine the total cost of this tax services job. Estimated Cost 190 60 Hours used Hourly rate OH Base Labor Cost OH rate Total Cost

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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Accounting for transactions, construction company Superior Construction, Inc. is a home builder in Arizona. Superior uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account titled Construction Overhead. The company applies overhead based on estimated direct labor costs. For the year, it estimated construction over head of $1,150,000 and total direct labor costs of $5,750,000. The following events occurred during August: a. Purchased materials on account, $400,000. b. Requisitioned direct materials and used direct labor in construction. Recorded the materials requisitioned. c. The company incurred total wages of $300,000. Use the data from Item b to assign the wages. Wages are not yet paid. d. Depreciation of construction equipment, $6,700. e. Other overhead costs incurred: Equipment rentals paid in cash, $30,000; Worker liability insurance expired, $7,000. f. Allocated overhead to jobs. g. Houses completed: 402, 404. h.…
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Marian Manufacturing (2M) applies manufacturing overhead to jobs based on direct labor costs. For Year 2, 2M estimates its manufacturing overhead to be $423,020 and its direct labor costs to be $813,500. 2M worked on three jobs for the year. Job 2M-1, which was sold during Year 2, had actual direct labor costs of $555,500. Job 2M-2, which was completed but not sold at the end of the year, had actual direct labor costs of $373,700. Job 2M-3, which is still in work-in-process inventory, had actual direct labor costs of $80,800. Actual manufacturing overhead for Year 2 was $558,800. Required: Prepare an entry to allocate over- or underapplied overhead to Work in Process, Finished Goods and Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A Record the allocation of over- or underapplied overhead. Note: Enter debits before credits. Transaction 1 Record…
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