(5 points) Jones and Jones CPA firm has the following budget for the year: Direct...
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(5 points) Jones and Jones CPA firm has the following budget for the year: Direct labor (for professional hours charged to clients) $200,000 Overhead Indirect materials Indirect labor Depreciation - Building Depreciation Furniture Utilities Insurance Property taxes Other expenses 10,000 250,000 50,000 5,000 12,000 4,800 5,200 3,000 $340,000 Total The firm uses direct labor as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follow: Henderson account $800 $3,000 Direct materials Direct labor Fisher account $2,380 $12,600 Direct materials Direct labor Required 1. 2. Compute the Jones and Jones budgeted overhead rate. Explain how this is used. Compute the amount of overhead to be charged to the Henderson and Fisher accounts using the predetermined overhead rate calculated in requirement (1)
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