Exercise 12-7A (Algo) Job-order costing in a service company LO 12-2 Jordan Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers as vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of interest and depreciation. The direct operating costs for each condo follow Condo 1 Condo 2 Condo 3 Total Direct Labor $17,800 18,500 22,250 $58,550 Income eamed Other Direct Operating Costs. $ 43,800 42,000 62,000 $147,800 Indirect operating expenses, which amounted to $44,340, are allocated to the condos in proportion to the amount of other direct operating costs incurred for each. Required a. Assuming that the amount of rent revenue from Condo 2 is $105,000, what amount of income did it earn? (Do not round. intermediate calculations.) A
Exercise 12-7A (Algo) Job-order costing in a service company LO 12-2 Jordan Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers as vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of interest and depreciation. The direct operating costs for each condo follow Condo 1 Condo 2 Condo 3 Total Direct Labor $17,800 18,500 22,250 $58,550 Income eamed Other Direct Operating Costs. $ 43,800 42,000 62,000 $147,800 Indirect operating expenses, which amounted to $44,340, are allocated to the condos in proportion to the amount of other direct operating costs incurred for each. Required a. Assuming that the amount of rent revenue from Condo 2 is $105,000, what amount of income did it earn? (Do not round. intermediate calculations.) A
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Exercise 12-7A (Algo) Job-order costing in a service company LO 12-2
Jordan Condos Corporation is a small company owned by Dennis Hatch. It leases three condos of differing sizes to customers as
vacation facilities. Labor costs for each condo consist of maid service and maintenance cost. Other direct operating costs consist of
interest and depreciation. The direct operating costs for each condo follow
Condo 1
Condo 2
Condo 3
Total
Direct
Labor
$17,800
18,500
22,250
$58,550
Other Direct
Operating Costs.
$ 43,800
42,000
62,000
$147,800
Indirect operating expenses, which amounted to $44,340, are allocated to the condos in proportion to the amount of other direct
operating costs incurred for each.
Required
Income earned
a. Assuming that the amount of rent revenue from Condo 2 is $105,000, what amount of income did it earn? (Do not round
intermediate calculations.)
A
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