Compute Job Costs for a Service Organization: At the beginning of the month, Renhor Architects had two
Question:
Compute Job Costs for a Service Organization: At the beginning of the month, Renhor Architects had two jobs in process that had the following costs assigned from previous months:
During the month. Jobs X-10 and Y-12 were completed but were not billed to customers. The completion costs for X-10 required $700 in direct labor. For Y-12, $2,000 in labor were used.
During the month, a new job, Z-14, was started but not finished. No new jobs were started. Total direct labor costs for all jobs amounted to $4,120 for the month. Overhead in this company refers to the cost of doing architectural work that is not directly traced to particular jobs. Examples of such costs are copying, printing, and travel costs for meetings with clients. Overhead is applied at a rate of 160 percent of direct labor costs for this and previous periods. Actual overhead for the month was $6,500.
Required:
a. What are the costs of Jobs X-10 and Y-12 at the beginning and the end of the month?
b. What is the cost of Job Z-14 at the end of the month?
c. How much was the manufacturing overhead variance for the month?
Step by Step Answer:
