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Divine Construction, Inc. is a home builder in Arizona. Divine uses a job order costing system in which each house is a job. Because
Divine Construction, Inc. is a home builder in Arizona. Divine uses a job order costing system in which each house is a job. Because it constructs houses, the company uses an account titled Construction Overhead. The company applies overhead based on estimated direct labor costs. For the year, it estimated construction overhead of $1,050,000 and total direct labor cost of $2,625,000. The following events occurred during August: (Click the icon to view the events.) Read the requirements. Total cost equals Choing Finished Goods invertory Requirement 6. Compute gross profit on the house that was sold. What costs must gross profit cover for Divine Construction? Divine Construction, Inc. Gross profit on Homes Sold In August Gross profit What costs must gross profit cover for Divine Construction? The gross profit must cover these types of costs: Administration Construction wages Customer service Design Direct labor Direct materials Distribution C Income taxes Marketing Research and development input fields and then continue to the next question.
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