Costello Repair Services specializes in the routine maintenance and repair of power lawn mowers and other small

Question:

Costello Repair Services specializes in the routine maintenance and repair of power lawn mowers and other small machines. Three orders (#721,

#722, and #723) were started and completed in March. Materials costing $41 were used on order #721, materials costing $17 were used on order #722; and materials costing $8 were used on order #723. Labor is paid at a uniform rate of $8.50 per hour, and overhead is applied at 80 percent of labor cost. During the month, 3 labor hours were used for order #721, 2 hours for order #722, and 4 hours for order

#723.


Required:
Compute the cost of each order, showing separately the cost of materials, labor, and overhead.

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9780538842822

9th Edition

Authors: Harold M. Sollenberger, Arnold Schneider, Lane K. Anderson

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