Diaz and Associates incurred the following costs in completing a tax return for a large company. Diaz applies overhead at 50% of direct labor cost.

Labor	Hours Used				Hourly Rate
Partner		5			$	500
Senior manager		12				200
Staff accountants		100				50

1. Prepare journal entries to record direct labor and the overhead applied.

View transaction list Journal entry worksheet 2 Record direct labor. Note: Enter debits before credits. Transaction General Journal Debit Credit explanation Record entry Clear entry View general journal