Managerial Accounting: Job cost; Service Business Overhead

John Wilson, CPA, has just opened a tax and audit service business. the coming year as follows: He estimates his overhead costs for Office Supplies .. Depreciation Expense office equipment Advertising - yearly contract 3,000 2,000 .. .. l'otal -$43,200 John allocates overhead costs to all jobs performed for clients using a base of his Direct Labor Hours He estimates that he will work 1,800 hours conducting audits and preparing tax returns in the coming year John uses $30 per hour for his hourly wage rate when computing the cost to the client for work perfomed. On John's first job for the year, he spent 6 hours preparing a tax returm for Diana Wong What is the cost that he should bill Diana for preparing her tax return