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Cat Accounting for a Service Company of an and Benson accumulates costs assodated with individual cases, using a job order cost system. The following transactions
Cat Accounting for a Service Company of an and Benson accumulates costs assodated with individual cases, using a job order cost system. The following transactions oching 3. Gunged 680 hours of professional (lawydt) tinite to the Obsidian Co, breech of contract suit to prepare for the trial, at a rate of $170 per hour. 10. Sembursed travel costs to employees for depositions related to the Obsidian case, $17,700. chamed 2 tour of professional time for the Obsidian trial at a rate of $280 per hour. 18. Received invoice from consultants Wadaday and Harden for $50,900 for expert testimony related to the Obsidian trial 27. Applied office overhead at a rate of $55 per professional hour charged to the Obsidian case. 31. Paid administrative and support salaries of $35,100 for the month. 31. Used office supplies for the month $11.900. 31. Pald professional salaries of $193,900 for the month. 31. Billed Obsidian $336,700 for successful defense of the case. JUY 31 Billed Accounts Receivable 336,700 Fees Earned 336,700 July 31 Cost 295,300 Cost of Services Work in Process 295.300 Check My Wors a. Record the direct costs in Work in process, Apply the overhead based on professional hours. Record actual overhead in the office Overhead account. For cases completed, move the conts from work in process to cost of Service 5. How much office overhead is over- or underapplied? Enter your answer as a positive number 2,500 Overapplied Determine the gross profit on the Obsidian case, assuming that over- or underapplied office overhead is closed monthly to cont of services. 41,400 x
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