Exercise 15-30 (Algo) Determining cost and price for services LO A1

Diaz and Associates incurred the following direct labor costs in completing tax services job for a client. Diaz applies overhead at 50% of direct labor cost.

Direct Labor on Tax Job Hours Used Hourly Rate Partner 6 $ 530 Senior manager 16 180 Staff accountants 90 70

Exercise 15-30 (Algo) Determining cost and price for services LO A1 Diaz and Associates incurred the following direct labor costs in completing tax services job for a client. Diaz applies overhead at 50% of direct labor cost. Direct Labor on Tax Job Partner Senior manager Staff accountants Hours Used 6 16 90 Hourly Rate $ 530 180 70 1. Determine the total cost of this tax services job. Estimated Cost Hours used Hourly rate Direct labor type Labor Cost Total Cost OH Base OH rate Total direct labor cost Overhead Estimated Applied Overhead Total cost 2. If Diaz charged $24,000 for this tax services job, what is the gross profit for the job? Gross Profit