Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Alita Associates is an accounting firm that provides audit and tax services to its clients. Each audit is considered a job for the firm, just
Alita Associates is an accounting firm that provides audit and tax services to its clients. Each audit is considered a "job" for the firm, just like a manufacturing company considers a customer order as a "job." Alita has direct costs related to performing an Audit #230 as follows: 5 hours of staff labor @ $97 per hour 4 hours of assembly labor @$32 per hour $47 of materials . In addition, Alita Associates estimates its overhead related to the manufacture of audits to be $58,595 for the year. The company expects to do 11,789 audits for the year. The company also expects to use 59,766 staff hours for the year. If Alita allocates overhead to jobs based on staff hours, what is the total cost of Audit #230? *Hint, make a job order cost sheet for Job 230. It should include materials, labor, and overhead. There are two types of labor here, but you will just add them up to get total labor for Job 230. Round each step to the nearest 2 decimal places. For your final answer, round to the nearest dollar
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started