Using job order costing in a service company Roth Accounting pays Jack Smith $90,000 per year.</p><p> Requirements What is the hourly cost to Roth Accounting for employing Smith? Assume a 30-hour week and a 50-week year. What direct labor cost would be assigned to Client 507 if Smith works 15 hours to prepare Client 507’s financial statements?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 7PA: Please use the information from this problem for these calculations. After grouping cost pools and...
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Using job order costing in a service company

Roth Accounting pays Jack Smith $90,000 per year.</p><p>

Requirements

  1. What is the hourly cost to Roth Accounting for employing Smith? Assume a 30-hour week and a 50-week year.
  2. What direct labor cost would be assigned to Client 507 if Smith works 15 hours to prepare Client 507’s financial statements?
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