H D E K M P Q V W 7 WORK IN PROCESS INV ACCOUNTS RECEIVABLE DL HRS RATI 101 ACCOUNTS PAYABLE COST OF SERVICES ACCOUNTING REVENUE DL $120 DI FO FO so $0 DLH-15 |TAL S0 OFFICE OVERHEAD SALARIES PAYARLE 102 DL HRS RATE $120 DU FC sa DLH-22 TOTAL so TRANSACTIONS FOR NORA'S TAX SERVICE 1 Nora started her tax service on lanuary 1,, 2019. She began by budgeting the office overhead costs projected for the first year DL HRS RATE 103 $120 $36.000 PREPAID INSURANCE DI Office Rent Indirect Labor- -secretarial and janitorial Photocopying costs Computer leasing costs (hardware and software) $0 100,000 FO so a.000 DLH-14 |OTAL $0 24,000 Utilities 30.000 RATE 104 EQUIPMENT DL HRS Insurance 10,000 $12 Total Estimated Office Overhead for 2019 $208.000 DI $0 2 Nora plans to work fifty 40-haur weeks in 2019, for a total of 2,000 direct labor hours. TAL Calculate the Predetermined Overhead Rate Total Estimated Overhead / Estimated DL Hours: POR ACC. DEPR, EQUIP DI HRS RATI 105 DL $120 $0 3 Nora set her Direct Labor Rate at $120 per hour. Each job cost sheet indicates the number of direct labor hours worked by Nora. Fill in the HOURS COLUMN $0 FO so for DL and FO; the job cost sheets have fomrmulas to add these figures up DR CI DLH-30 TOTAL 0 ACCOUNTS RECEIVABLE Nal for ur coneniance, the DL TOTAL and FO TOTAL ae caoulated belom te sheets. 0 OFFICE OVERHEAD 4 Record the actual Office Overhead as follows AUTOMATED TOTALS FOR JC SHEETS 10.500 0 PREPAID INSURANCE OFFICE OVERHEAD $120 DL FO Nora set her Direct Labor Rate at $120 per hour. Each job cost sheet indicates co so the number of direct labor hours worked by Nora. for DL and FO, the job cost sheets have formulas to add these figures up ill in the HOURS COLUMN DR CE DLH-30 TOTAL 0 ACCOUNTS RECEIVABLE Note for your camenience, the DL TOTAL and FO TOTAL are calculated below tte sheets Record the actual Office Overhead as follows 0 OFFICE OVERHEAD 10.500 0 PREPAID INSURANCE AUTOMATED TOTALS FOR JC SHEETS: OFFICE OVERHEAD 1 EQUIPMENT 0 ACC. DEPR. EQUIP. DL TOTAL 4,000 S0 SALARIES PAYABLE FO TOTAI 2,000 S0 ACCOUNTS PAYABLE PREPAID INSURANCE 0 WORK IN PROCESS INV 1.500 0 ACCOUNTS PAYABLE ACC. DEPR. EQUIP 3,000 0 COST OF SERVICES ary entries to the T-accounts, as followe 5 Make two sum 0 ACCOUNTING REVENUE WORK IN PROCESS Nora's compensation (add up the DL fiqures on the job cost sheets) 0 C SALARIES PAYABLE WORK IN PROCESS Applying office (add the FO fiqures on the job cost sheets) FACTORY OVERHEAD YYY 6 At this point the overhead over or underapplied and by how much? Over or Under? By how much? 0 C Jobs 101 and 102 were complete and delivered customers The customer for Job 101 was billed $5.000 and the customer for Job 102 was billed $7,000. The entry should look like this: Accounts Receivable Accounting Revenue Services ill in costs f Job 101 -Job 102 Cost www Work in Process H D E K M P Q V W 7 WORK IN PROCESS INV ACCOUNTS RECEIVABLE DL HRS RATI 101 ACCOUNTS PAYABLE COST OF SERVICES ACCOUNTING REVENUE DL $120 DI FO FO so $0 DLH-15 |TAL S0 OFFICE OVERHEAD SALARIES PAYARLE 102 DL HRS RATE $120 DU FC sa DLH-22 TOTAL so TRANSACTIONS FOR NORA'S TAX SERVICE 1 Nora started her tax service on lanuary 1,, 2019. She began by budgeting the office overhead costs projected for the first year DL HRS RATE 103 $120 $36.000 PREPAID INSURANCE DI Office Rent Indirect Labor- -secretarial and janitorial Photocopying costs Computer leasing costs (hardware and software) $0 100,000 FO so a.000 DLH-14 |OTAL $0 24,000 Utilities 30.000 RATE 104 EQUIPMENT DL HRS Insurance 10,000 $12 Total Estimated Office Overhead for 2019 $208.000 DI $0 2 Nora plans to work fifty 40-haur weeks in 2019, for a total of 2,000 direct labor hours. TAL Calculate the Predetermined Overhead Rate Total Estimated Overhead / Estimated DL Hours: POR ACC. DEPR, EQUIP DI HRS RATI 105 DL $120 $0 3 Nora set her Direct Labor Rate at $120 per hour. Each job cost sheet indicates the number of direct labor hours worked by Nora. Fill in the HOURS COLUMN $0 FO so for DL and FO; the job cost sheets have fomrmulas to add these figures up DR CI DLH-30 TOTAL 0 ACCOUNTS RECEIVABLE Nal for ur coneniance, the DL TOTAL and FO TOTAL ae caoulated belom te sheets. 0 OFFICE OVERHEAD 4 Record the actual Office Overhead as follows AUTOMATED TOTALS FOR JC SHEETS 10.500 0 PREPAID INSURANCE OFFICE OVERHEAD $120 DL FO Nora set her Direct Labor Rate at $120 per hour. Each job cost sheet indicates co so the number of direct labor hours worked by Nora. for DL and FO, the job cost sheets have formulas to add these figures up ill in the HOURS COLUMN DR CE DLH-30 TOTAL 0 ACCOUNTS RECEIVABLE Note for your camenience, the DL TOTAL and FO TOTAL are calculated below tte sheets Record the actual Office Overhead as follows 0 OFFICE OVERHEAD 10.500 0 PREPAID INSURANCE AUTOMATED TOTALS FOR JC SHEETS: OFFICE OVERHEAD 1 EQUIPMENT 0 ACC. DEPR. EQUIP. DL TOTAL 4,000 S0 SALARIES PAYABLE FO TOTAI 2,000 S0 ACCOUNTS PAYABLE PREPAID INSURANCE 0 WORK IN PROCESS INV 1.500 0 ACCOUNTS PAYABLE ACC. DEPR. EQUIP 3,000 0 COST OF SERVICES ary entries to the T-accounts, as followe 5 Make two sum 0 ACCOUNTING REVENUE WORK IN PROCESS Nora's compensation (add up the DL fiqures on the job cost sheets) 0 C SALARIES PAYABLE WORK IN PROCESS Applying office (add the FO fiqures on the job cost sheets) FACTORY OVERHEAD YYY 6 At this point the overhead over or underapplied and by how much? Over or Under? By how much? 0 C Jobs 101 and 102 were complete and delivered customers The customer for Job 101 was billed $5.000 and the customer for Job 102 was billed $7,000. The entry should look like this: Accounts Receivable Accounting Revenue Services ill in costs f Job 101 -Job 102 Cost www Work in Process