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Question 7 --/1 View Policies Current Attempt in Progress Don Lieberman and Associates, a CPA firm, uses job order costing to(a) Determine the cost of each job. Cost Waters $ Renolds $ Bayfield $ (b) Indicate the balance of the Service Contracts in P

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Don Lieberman
Calculation of overhead applied to Jobs
Particulars Waters Inc. Reynolds Inc. Bayfield Inc. Total Note
Auditor hours                76.00             90.00             48.00 A
OH rate                55.00             55.00             55.00 B
Overhead applied          4,180.00        4,950.00        2,640.00 11,770.00 C=A*B
Answer a
Job Cost sheet
Particulars Waters Inc. Reynolds Inc. Bayfield Inc.
Direct Materials              610.00           480.00           300.00
Auditor Labor costs          6,300.00        7,600.00        3,575.00
Overhead          4,180.00        4,950.00        2,640.00 See C
Total Cost        11,090.00     13,030.00        6,515.00 D
Answer b
Waters Inc.
Work in Process Inventory $    11,090.00 See D
Answer c Amount $
Actual overhead        13,900.00
Less: Overhead applied
       11,770.00
See C
Balance in operating overhead account          2,130.00
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