QUANTITATIVE ANALYSIS: It is advisable to document all your work and calculations as applicable. (1)...
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Accounting
QUANTITATIVE ANALYSIS: It is advisable to document all your work and calculations as applicable.
(1) Jerrica & Jerri, Attorneys at Law, has the following budget for the year:
$200,000 Direct labor (for professional hours charged to clients) Overhead Indirect materials Indirect labor Depreciation Building Depreciation - Furniture Utilities Insurance Property taxes Other expenses Total 10,000 250,000 50,000 5,000 12,000 4,800 5,200 3,000 $340,000 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: $4,500 29,000 Henderson account: Direct materials Direct labor Fisher account: Direct materials Direct labor 5,560 69,600 Required: (1) Compute the Jerrica & Jerri budgeted overhead rate. Explain how this is used. (2) Compute the amount of overhead to be charged to the Henderson and Fisher accounts using the predetermined overhead rate calculated in requirement (1). (3) Compute the separate job cost for the Henderson and Fisher accounts
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