Question

Allocation Busters (AB) is a dispute mediation firm offering services to firms in disputes about cost...

Allocation Busters (AB) is a dispute mediation firm offering services to firms in disputes about cost allocations with government agencies. For March, AB worked 456 hours for Massive Airframes and 661 hours for Gigantic Drydocks. AB bills clients at the rate of $507 per hour; labor cost for its professional staff is $210 per hour. Overhead costs in March totaled $41,900. Overhead is applied to clients at $44 per labor-hour. In addition, AB had $198,400 in marketing and administrative costs. All transactions are on account. All services were billed. Transaction Description

(a) Record Labor cost (b) Record Applied Service Overhead (c) Record Cost of services billed (d) Record Actual Service Overhead

Required: a. Show labor and overhead cost flows through T-accounts.

b. Prepare an income statement for the company for March.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
TechMaster is an information technology (IT) consulting company offering services to small firms. TechMaster bills clients...
TechMaster is an information technology (IT) consulting company offering services to small firms. TechMaster bills clients for its various services based on the hours its professionals spend. In August, IT professionals billed 955 hours to clients and worked a total of 1,080 hours (the difference includes time for training, preparing bids, and so on, which are considered administrative costs). TechMaster bills clients at the rate of $260 per hour; labor cost for its IT professionals is $90 per hour. Overhead...
For August, Royal Consulting and Mediation Practice (RCMP) worked 800 hours for Alberta Company and 1,700...
For August, Royal Consulting and Mediation Practice (RCMP) worked 800 hours for Alberta Company and 1,700 hours for Ontario Corporation. RCMP bills clients at the rate of $540 per hour; labor cost for its consulting staff is $340 per hour. The total number of hours worked in August was 2,500, and overhead costs were $54,000. Overhead is applied to clients at $27 per labor-hour. In addition, RCMP had $310,000 in marketing and administrative costs. All transactions are on account. All...
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist...
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm’s direct labor includes salaries of consultants that work at the client’s job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate...
Job order cost accounting for a service company The law firm of Furlan and Benson accumulates...
Job order cost accounting for a service company The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July: July 3. Charged 640 hours of professional (lawyer) time at a rate of $180 per hour to the Obsidian Co. breech of contract suit to prepare for the trial 10. Reimbursed travel costs to employees for depositions related to the Obsidian case, $27,000 14. Charged 250 hours...
Floyd’s Auto Repair Shop uses a job order cost system to track the cost of each...
Floyd’s Auto Repair Shop uses a job order cost system to track the cost of each repair. Floyd’s applies its garage or shop overhead at a rate of $20 per direct labor hour spent on each repair. Floyd’s uses the following accounts to track the cost of all repairs: Raw Materials (parts and supplies) Repair Jobs in Process Cost of Repairs Completed and Sold Garage/Shop* Overhead Costs * Because an auto shop does not manufacture a product, the overhead cost...
Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related...
Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations: a. Materials purchased on account, $30,100. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $3,110 $2,720 302 3,710 3,810 303 2,400 1,970 304 8,500 6,870 305 5,210 5,410 306 3,850 3,290 For general factory use 1,080 4,120 c. Factory overhead costs incurred on account, $5,440. d. Depreciation of machinery and equipment,...
Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related...
Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations: a. Materials purchased on account, $31,030. b. Materials requisitioned and factory labor used: Job Materials Factory Labor 301 $3,060 $2,710 302 3,640 3,820 303 2,430 1,870 304 8,280 7,010 305 5,340 5,100 306 3,790 3,170 For general factory use 1,060 4,260 c. Factory overhead costs incurred on account, $5,290. d. Depreciation of machinery and equipment,...
Service Cost Flows Vente Marketing, Ltd., produces television advertisements for businesses that are marketing products in...
Service Cost Flows Vente Marketing, Ltd., produces television advertisements for businesses that are marketing products in the western provinces of Canada. To achieve cost control, Vente Marketing uses a job cost system similar to that found in a manufacturing organization. It uses some different account titles: Account Replaces Videos-in-Process Work-in-Process Video Supplies Inventory Manufacturing Supplies Inventory Cost of Videos Completed Cost of Goods Sold Accumulated Depreciation, Studio Assets Accumulated Depreciation, Factory Assets Studio Overhead Manufacturing Overhead Vente Marketing does not...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT