State prison system, For the month of January, Bay

State prison system

Reference no: EM13252149

For the month of January, Bay Accountants worked 2,000 hours for Lake Lumber, 600 hours for Marty’s Marina, and 1,000 hours for the State Prison System. Bay bills clients at $160 an hour; its labor costs are $60 an hour. A total of 4,000 hours were worked in January with 400 hours not billable to clients. Overhead costs of $60,000 were incurred and were assigned to clients on the basis of direct labor-hours. Because 400 hours were not billable, some overhead was not assigned to jobs. Bay had $40,000 in marketing and administrative costs. All transactions were on account.

Reference no: EM13252149

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