Question

The budget for the Murphy Equipment Inc. job in P9-1 consisted of the following amounts:
In P9-1, Freeman and Lueke, attorneys-at-law, provided legal representation to Murphy Equipment Inc. in a product liability suit. Twenty partner hours and 65 associate hours were worked in defending the company. The cost of each partner hour is $325, which includes partner wages plus overhead, based on direct labor cost. The cost of each associate hour is $145, which also includes wages and overhead. Other costs that can be directly identified with the job are travel ($2,800) and telephone/fax/copying charges ($1,740). The date Murphy contracted with Freeman and Lueke was May 8, 2013, and the defense was successfully completed on December 21, 2013. The engagement number is 525.
Partners' salary and overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,300
Associates' salary and overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9,175
Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,150
Telephone/fax/copying . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,475
The successful bid price of the job was $30,000.

Required:
1. Prepare a cost performance report.
2. Compute the budgeted profit and the actual profit on the job.



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  • CreatedMay 05, 2014
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