Blanchette Plant Service completed a special landscaping job for Kerry Company. Blanchette uses ABC and has the
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Blanchette Plant Service completed a special landscaping job for Kerry Company. Blanchette uses ABC and has the following predetermined overhead allocation rates:
The Kerry job included $750 in plants; $1,300 in direct labor; one design; and 30 plants.
Requirements
1. What is the total cost of the Kerry job?
2. If Kerry paid $3,540 for the job, what is the operating income or loss?
3. If Blanchette desires an operating income of 30% of cost, how much should the company charge for the Kerry job?
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Related Book For
Horngrens Financial And Managerial Accounting
ISBN: 9780134486833
6th Edition
Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura
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