Exercise Algo Job Costing in a Service Organization LO
Farnsworth Executive Coaching FEC offers services to firms in advising executives on improving productivity and leadership. For
August, FEC worked hours for Grace Corporation and hours for Temple Construction. In addition, FEC had small
engagements with various clients totaling hours. FEC bills clients at the rate of $ per hour; labor cost for its professional staff is
$ per hour. Overhead costs in August totaled $ Overhead is applied to clients at $ per laborhour. In addition, FEC had
$ in marketing and administrative costs. All transactions are on account. All services were billed.
Required:
a Show labor and overhead cost flows through Taccounts.
b Prepare an income statement for the company for August.
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Show labor and overhead cost flows through Taccounts.
