Morgan & Morgan is a small firm that assists clients in the preparation of their tax returns.The firm has five accountants and five researchers,and it uses job order costing to determine the cost of each client's return.The firm is divided into two departments: (1)Preparation and (2)Research & Planning.Each department has its own overhead application rate.The Preparation Department's rate is based on accountant labor costs and Research & Planning is based on the number of research hours.The following is the company's estimates for the current year's operations.

Client No.2006-713 was completed during April of the current year and incurred the following costs and hours:

a.Compute the overhead rates to be used by both departments.
b.Determine the cost of Client No.2006-713,by department and in total.

Question

Morgan & Morgan is a small firm that assists clients in the preparation of their tax returns.The firm has five accountants and five researchers,and it uses job order costing to determine the cost of each client's return.The firm is divided into two departments: (1)Preparation and (2)Research & Planning.Each department has its own overhead application rate.The Preparation Department's rate is based on accountant labor costs and Research & Planning is based on the number of research hours.The following is the company's estimates for the current year's operations.

Client No.2006-713 was completed during April of the current year and incurred the following costs and hours:

a.Compute the overhead rates to be used by both departments.
b.Determine the cost of Client No.2006-713,by department and in total.

Client No.2006-713 was completed during April of the current year and incurred the following costs and hours:

a.Compute the overhead rates to be used by both departments.
b.Determine the cost of Client No.2006-713,by department and in total.

Quizplus · Accepted Answer

The Answer of Morgan & Morgan is a small firm that assists clients in the preparation of their tax returns.The firm has five accountants and five researchers,and it uses job order costing to determine the cost of each client's return.The firm is divided into two departments: (1)Preparation and (2)Research & Planning.Each department has its own overhead application rate.The Preparation Department's rate is based on accountant labor costs and Research & Planning is based on the number of research hours.The following is the company's estimates for the current year's operations.

Client No.2006-713 was completed during April of the current year and incurred the following costs and hours:

a.Compute the overhead rates to be used by both departments.
b.Determine the cost of Client No.2006-713,by department and in total.

Morgan & Morgan Is a Small Firm That Assists Clients