Jones and Jones CPA firm has the following budget for the year: The firm uses direct labor as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follow: Required:
(1) Compute the Jones and Jones budgeted overhead rate. Explain how this is used.
(2) Compute the amount of overhead to be charged to the Henderson and Fisher accounts using the predetermined overhead rate calculated in requirement (1).
(3) Compute the separate job cost for the Henderson and Fisher accounts.

Question

Jones and Jones CPA firm has the following budget for the year:  The firm uses direct labor as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follow:  Required:
(1) Compute the Jones and Jones budgeted overhead rate. Explain how this is used.
(2) Compute the amount of overhead to be charged to the Henderson and Fisher accounts using the predetermined overhead rate calculated in requirement (1).
(3) Compute the separate job cost for the Henderson and Fisher accounts.

Quizplus · Accepted Answer

The Answer of Jones and Jones CPA firm has the following budget for the year:  The firm uses direct labor as the cost driver to apply overhead to clients. During January, the firm worked for many clients; data for two of them follow:  Required:
(1) Compute the Jones and Jones budgeted overhead rate. Explain how this is used.
(2) Compute the amount of overhead to be charged to the Henderson and Fisher accounts using the predetermined overhead rate calculated in requirement (1).
(3) Compute the separate job cost for the Henderson and Fisher accounts.

Jones and Jones CPA Firm Has the Following Budget for the Year