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
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter10: Accounting Systems For Manufacturing Operations
Section: Chapter Questions
Problem 10.25E: Activity-based costing in an insurance company Umbrella Insurance Company carries three major lines...
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