In October, Temptations Event Planners (TEP) planned events for two clients. TEP worked 140 hours for Ward Corporation and 240 hours for Girardin Industries. TEP bills clients at the rate of $350 per hour; labor cost for its planning staff is $140 per hour. The total number of hours worked in October was 380, and overhead costs were $15,600. Overhead is applied to clients at $32 per planner- hour. In addition, TEP had $27,000 in marketing and administrative costs. All transactions are on account. All services were billed. Transaction (a) (b) (c) (d) Description Record labor cost Record applied service overhead Record cost of services billed Record actual service overhead Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an income statement for the company for October.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![In October, Temptations Event Planners (TEP) planned events for two clients. TEP worked 140 hours for Ward Corporation and 240
hours for Girardin Industries. TEP bills clients at the rate of $350 per hour; labor cost for its planning staff is $140 per hour. The total
number of hours worked in October was 380, and overhead costs were $15,600. Overhead is applied to clients at $32 per planner-
hour. In addition, TEP had $27,000 in marketing and administrative costs. All transactions are on account. All services were billed.
Transaction
(a)
(b)
(c)
(d)
Description
Record labor cost
Record applied service overhead
Record cost of services billed
Record actual service overhead
Required:
a. Show labor and overhead cost flows through T-accounts.
b. Prepare an income statement for the company for October.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F28f50e45-bc8e-49e3-a5a6-2bc43e94643c%2Fbbe91c28-368e-48fd-a96c-5fa8dacb81e8%2Fg3k1a9j_processed.jpeg&w=3840&q=75)
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