Exercise 15-12 Don Lieberman and Associates, a CPA firm, usesjob order costing to capture the costs of its audit jobs. Therewere no audit jobs in process at the beginning of November. Listedbelow are data concerning the three audit jobs conducted duringNovember.
Lynn Brian Mike Direct materials >>>> $660 $480$300
Auditor labor costs >>>>> $6,180 $7,250$3,570
Auditor hours >>>>> 74 90 51
1) Question are :
Overhead costs are applied to jobs on the basis of auditorhours, and the predetermined overhead rate is $56 per auditor hour.The Lynn job is the only incomplete job at the end of November.Actual overhead for the month was $12,700.
(a) Determine the cost of each job. Cost Lynn $ Brian $ Mike$
(b) Indicate the balance of the Service Contracts in Processaccount at the end of November. Balance in service contracts inprocess account $
(c) Calculate the ending balance of the Operating Overheadaccount for November. Balance in operating overhead account $
Exercise 15-12 Don Lieberman and Associates, a CPA firm, usesjob order costing to capture the costs of its audit jobs. Therewere no audit jobs in process at the beginning of November. Listedbelow are data concerning the three audit jobs conducted duringNovember.
Lynn Brian Mike Direct materials >>>> $660 $480$300
Auditor labor costs >>>>> $6,180 $7,250$3,570
Auditor hours >>>>> 74 90 51
1) Question are :
Overhead costs are applied to jobs on the basis of auditorhours, and the predetermined overhead rate is $56 per auditor hour.The Lynn job is the only incomplete job at the end of November.Actual overhead for the month was $12,700.
(a) Determine the cost of each job. Cost Lynn $ Brian $ Mike$
(b) Indicate the balance of the Service Contracts in Processaccount at the end of November. Balance in service contracts inprocess account $
(c) Calculate the ending balance of the Operating Overheadaccount for November. Balance in operating overhead account $
