July $31$ Admin. sal.

July $31$ Supplies

July $31$ Prof. sal.

July $31$ Billed

July $31$ Cost

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b$.$ How much office overhead is over$-$ or underapplied? Enter your answer as a positive number.

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c$.$ Determine the gross profit on the Obsidian case, assuming that over$-$ or underapplied office overhead is closed monthly to cost of services.Job Order Cost Accounting for a Service Company

The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July:

July $3.$ Charged $500$ hours of professional $($lawyer$)$ time at a rate of $$170$ per hour to the Obsidian Co$.$ breech of contract suit to prepare for the trial

Reimbursed travel costs to employees for depositions related to the Obsidian case, $$25,700$

Charged $190$ hours of professional time for the Obsidian trial at a rate of $$280$ per hour

Received invoice from consultants Wadsley and Harden for $$71,700$ for expert testimony related to the Obsidian trial

Applied office overhead at a rate of $$75$ per professional hour charged to the Obsidian case

Paid administrative and support salaries of $$36,700$ for the month

Used office supplies for the month, $$12,400$

Paid professional salaries of $$183,000$ for the month

Billed Obsidian $$327,400$ for successful defense of the case

a$.$ Provide the journal entries for each of these transactions. If an amount box does not require an entry, leave it blank.

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