Homework Help is Here – Start Your Trial Now!
Business
Accounting
Queenston Professional Support (QPS) provides professional services (IT, payroll and billing, and so on) to firms requiring temporary help in those areas. QPS bills clients for its various services based on the hours its professionals spend. In January, QPS professionals billed 1,925 hours to clients and worked a total of 2,020 hours. (The difference includes time for training, preparing bids, and so on, which are considered administrative costs.) QPS bills clients at the rate of $365 per hour; labor cost for its professionals averaged $195 per hour in January. Overhead costs in January totaled $119,150. Overhead is applied to clients at $60 per labor-hour. In addition, QPS had $155,500 in marketing and administrative costs (not including the professional labor time as described). All transactions are on account. All services were billed. Transaction Description (a) Record labor cost (b) Record applied service overhead (c) Record cost of services billed (d) Record actual service overhead es Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an income statement for the company for January. Complete this question by entering your answers in the tabs below. Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Debit Beginning balance Ending balance Work-in-Process Credit Debit Credit Beginning balance Ending balance Cost of Services Billed Service Overhead Control Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Applied Service Overhead Debit Credit Beginning balance Ending balance Ending balance Required A Required B

Queenston Professional Support (QPS) provides professional services (IT, payroll and billing, and so on) to firms requiring temporary help in those areas. QPS bills clients for its various services based on the hours its professionals spend. In January, QPS professionals billed 1,925 hours to clients and worked a total of 2,020 hours. (The difference includes time for training, preparing bids, and so on, which are considered administrative costs.) QPS bills clients at the rate of $365 per hour; labor cost for its professionals averaged $195 per hour in January. Overhead costs in January totaled $119,150. Overhead is applied to clients at $60 per labor-hour. In addition, QPS had $155,500 in marketing and administrative costs (not including the professional labor time as described). All transactions are on account. All services were billed. Transaction Description (a) Record labor cost (b) Record applied service overhead (c) Record cost of services billed (d) Record actual service overhead es Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an income statement for the company for January. Complete this question by entering your answers in the tabs below. Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Debit Beginning balance Ending balance Work-in-Process Credit Debit Credit Beginning balance Ending balance Cost of Services Billed Service Overhead Control Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Applied Service Overhead Debit Credit Beginning balance Ending balance Ending balance Required A Required B

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter3: Accounting For Labor
Section: Chapter Questions
Problem 2MC: Huron Manufacturing Co. uses a job order cost system to cost its products. It recently signed a new...
See similar textbooks
icon
Related questions
Question
None
Queenston Professional Support (QPS) provides professional services (IT, payroll and billing, and so on) to firms requiring temporary help in those areas. QPS bills clients for its various services based on the hours its professionals spend. In January, QPS professionals billed 1,925 hours to clients and worked a total of 2,020 hours. (The difference includes time for training, preparing bids, and so on, which are considered administrative costs.) QPS bills clients at the rate of $365 per hour; labor cost for its professionals averaged $195 per hour in January. Overhead costs in January totaled $119,150. Overhead is applied to clients at $60 per labor-hour. In addition, QPS had $155,500 in marketing and administrative costs (not including the professional labor time as described). All transactions are on account. All services were billed. Transaction Description (a) Record labor cost (b) Record applied service overhead (c) Record cost of services billed (d) Record actual service overhead es Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an income statement for the company for January. Complete this question by entering your answers in the tabs below. Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Debit Beginning balance Ending balance Work-in-Process Credit Debit Credit Beginning balance Ending balance Cost of Services Billed Service Overhead Control Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Applied Service Overhead Debit Credit Beginning balance Ending balance Ending balance Required A Required B
Transcribed Image Text:Queenston Professional Support (QPS) provides professional services (IT, payroll and billing, and so on) to firms requiring temporary help in those areas. QPS bills clients for its various services based on the hours its professionals spend. In January, QPS professionals billed 1,925 hours to clients and worked a total of 2,020 hours. (The difference includes time for training, preparing bids, and so on, which are considered administrative costs.) QPS bills clients at the rate of $365 per hour; labor cost for its professionals averaged $195 per hour in January. Overhead costs in January totaled $119,150. Overhead is applied to clients at $60 per labor-hour. In addition, QPS had $155,500 in marketing and administrative costs (not including the professional labor time as described). All transactions are on account. All services were billed. Transaction Description (a) Record labor cost (b) Record applied service overhead (c) Record cost of services billed (d) Record actual service overhead es Required: a. Show labor and overhead cost flows through T-accounts. b. Prepare an income statement for the company for January. Complete this question by entering your answers in the tabs below. Required A Required B Show labor and overhead cost flows through T-accounts. Wages Payable Debit Beginning balance Ending balance Work-in-Process Credit Debit Credit Beginning balance Ending balance Cost of Services Billed Service Overhead Control Debit Credit Debit Credit Beginning balance Beginning balance Ending balance Applied Service Overhead Debit Credit Beginning balance Ending balance Ending balance Required A Required B
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS