Diaz and Associates incurred the following direct labor costs in completing tax services job for a client. Diaz applies overhead at 50% of direct labor cost. Direct Labor on Tax Job Partner Senior manager Staff accountants Direct labor type Hours Used Total direct labor cost Overhead Estimated Applied Overhead Total cost 7 19 140 1. Determine the total cost of this tax services job. Estimated Cost Hourly Rate $ 490 170 60 Hours used Hourly rate OH Base Labor Cost OH rate Total Cost 2. If Diaz charged $28,000 for this tax services job, what is the gross profit for the job? Gross Profit
Diaz and Associates incurred the following direct labor costs in completing tax services job for a client. Diaz applies overhead at 50% of direct labor cost. Direct Labor on Tax Job Partner Senior manager Staff accountants Direct labor type Hours Used Total direct labor cost Overhead Estimated Applied Overhead Total cost 7 19 140 1. Determine the total cost of this tax services job. Estimated Cost Hourly Rate $ 490 170 60 Hours used Hourly rate OH Base Labor Cost OH rate Total Cost 2. If Diaz charged $28,000 for this tax services job, what is the gross profit for the job? Gross Profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Diaz... (see picture for info).
![Diaz and Associates incurred the following direct labor costs in completing tax services job for a client. Diaz applies overhead at 50%
of direct labor cost.
Direct Labor on Tax Job
Partner
Senior manager
Staff accountants
Direct labor type
Hours
Used
Total direct labor cost
Overhead
Estimated Applied Overhead
Total cost
7
19
140
Hourly
Rate
1. Determine the total cost of this tax services job.
Estimated Cost
$ 490
170
60
Hours used
Hourly rate
OH Base
Labor Cost
OH rate
Total Cost
2. If Diaz charged $28,000 for this tax services job, what is the gross profit for the job?
Gross Profit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f96dd47-ce3e-4fb6-9f29-e38e62f29b56%2F36e313b9-909a-4a7c-933c-b66d2e6c3f49%2Ft8i7k2_processed.png&w=3840&q=75)
Transcribed Image Text:Diaz and Associates incurred the following direct labor costs in completing tax services job for a client. Diaz applies overhead at 50%
of direct labor cost.
Direct Labor on Tax Job
Partner
Senior manager
Staff accountants
Direct labor type
Hours
Used
Total direct labor cost
Overhead
Estimated Applied Overhead
Total cost
7
19
140
Hourly
Rate
1. Determine the total cost of this tax services job.
Estimated Cost
$ 490
170
60
Hours used
Hourly rate
OH Base
Labor Cost
OH rate
Total Cost
2. If Diaz charged $28,000 for this tax services job, what is the gross profit for the job?
Gross Profit
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