Be Audit You Can Be is a law firm that defends clients from the IRS. They have
Question:
Be Audit You Can Be is a law firm that defends clients from the IRS. They have a new accounting system that reports the cost of client contracts using a normal absorption job-order costing system. Their total overhead is projected to be $2,000,000 for the coming year, of which 40% is allocated on the basis of staff direct labor hours (DLH) and 60% is allocated on the basis of partner direct labor hours (DLH). Be Audit You Can Be projects 8,000 staff DLH and 4,800 partner DLH for the year. The company's previous accounting system allocated overhead on the basis of total DLH. Calculate the reported overhead allocated to a job that requires 400 staff hours and 100 partner hours.
Management information systems
ISBN: 978-0073376813
10th edition
Authors: James A. O Brien, George M. Marakas