Blanchette Plant Service completed a special landscaping job for Kerry Company. Blanchette uses ABC and has the

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Blanchette Plant Service completed a special landscaping job for Kerry Company. Blanchette uses ABC and has the following predetermined overhead allocation rates: 


The Kerry job included $750 in plants; $1,300 in direct labor; one design; and 30 plants. 


Requirements 

1. What is the total cost of the Kerry job? 

2. If Kerry paid $3,540 for the job, what is the operating income or loss? 

3. If Blanchette desires an operating income of 30% of cost, how much should the company charge for the Kerry job?

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Related Book For  book-img-for-question

Horngrens Financial And Managerial Accounting

ISBN: 9780134486833

6th Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

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