Powerful Leads (PL) provides market analysis services for clients. Consultants contract with clients to perform jobs...

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Powerful Leads (PL) provides market analysis services for clients. Consultants contract with clients to perform jobs for predetermined fees. All jobs feature the work of one professional consultant, and some larger jobs include additional support labor. Because of this, PL's normal-costing system includes two direct cost pools, professional labor and support labor, and one indirect cost pool, overhead. (Click the icon for additional information.) Following is cost information for May 2020: (Click the icon to view the cost information for May 2020.) As of May 1, there were two jobs in progress: Pump Products and Monet, Inc. The job for Roja was started and completed in May. Read the requirements. Requirement 1. Calculate JIP at the end of May. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) Client Pump Products Monet Inc. Total Data table Beginning JIP Balance Professional Labor Cost in May Suport Labor May Allocated Cost in May Overhead Client Pump Products $ Monet, Inc. Roja From Beginning JIP Professional Support Labor Overhead Labor Allocated Incurred in May Professional Support Labor Hrs. Labor Hrs. 50,000 $28,000 $ 30,000 18,000 11,000 190 hrs. 740 hrs. 230 hrs. 530 hrs. 400 hrs. Print Done Total More info PL charges $90/hour to jobs for professional labor and charges $52/hour for support labor. Overhead is applied to jobs at a rate of $45 per labor-hour, whether professional or support. This rate was determined based on an annual estimated overhead cost of $900,000 and estimated labor-hours of 20,000 (10,000 professional hours and 10,000 support hours). Actual overhead in May was $75,000. PL tracks job costs in an account titled Jobs in Process (JIP). When the job is completed, costs are closed out to Cost of Completed Jobs (COCJ). Print Done Requirements - 1. Calculate JIP at the end of May. 2. Calculate COCJ for May. 3. Calculate under- or overallocated overhead in May. 4. Calculate the ending balances in JIP and COCJ if the under- or overallocated overhead amount is prorated based on the ending balances (before proration) in JIP and COCJ. 5. Corrine Bloom, the controller of Powerful Leads is concerned about the validity of allocating overhead equally for professional and support hours. She believes that overhead related to professional labor is approximately twice as costly as overhead related to support labor. Calculate new overhead rates per professional labor-hour and per support labor-hour that would address this issue. How would the cost of the Roja job be affected by this change? (Ignore the impact of over- or underallocated overhead.) Print Done Powerful Leads (PL) provides market analysis services for clients. Consultants contract with clients to perform jobs for predetermined fees. All jobs feature the work of one professional consultant, and some larger jobs include additional support labor. Because of this, PL's normal-costing system includes two direct cost pools, professional labor and support labor, and one indirect cost pool, overhead. (Click the icon for additional information.) Following is cost information for May 2020: (Click the icon to view the cost information for May 2020.) As of May 1, there were two jobs in progress: Pump Products and Monet, Inc. The job for Roja was started and completed in May. Read the requirements. Requirement 1. Calculate JIP at the end of May. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) Client Pump Products Monet Inc. Total Data table Beginning JIP Balance Professional Labor Cost in May Suport Labor May Allocated Cost in May Overhead Client Pump Products $ Monet, Inc. Roja From Beginning JIP Professional Support Labor Overhead Labor Allocated Incurred in May Professional Support Labor Hrs. Labor Hrs. 50,000 $28,000 $ 30,000 18,000 11,000 190 hrs. 740 hrs. 230 hrs. 530 hrs. 400 hrs. Print Done Total More info PL charges $90/hour to jobs for professional labor and charges $52/hour for support labor. Overhead is applied to jobs at a rate of $45 per labor-hour, whether professional or support. This rate was determined based on an annual estimated overhead cost of $900,000 and estimated labor-hours of 20,000 (10,000 professional hours and 10,000 support hours). Actual overhead in May was $75,000. PL tracks job costs in an account titled Jobs in Process (JIP). When the job is completed, costs are closed out to Cost of Completed Jobs (COCJ). Print Done Requirements - 1. Calculate JIP at the end of May. 2. Calculate COCJ for May. 3. Calculate under- or overallocated overhead in May. 4. Calculate the ending balances in JIP and COCJ if the under- or overallocated overhead amount is prorated based on the ending balances (before proration) in JIP and COCJ. 5. Corrine Bloom, the controller of Powerful Leads is concerned about the validity of allocating overhead equally for professional and support hours. She believes that overhead related to professional labor is approximately twice as costly as overhead related to support labor. Calculate new overhead rates per professional labor-hour and per support labor-hour that would address this issue. How would the cost of the Roja job be affected by this change? (Ignore the impact of over- or underallocated overhead.) Print Done