In June, Robust Engineering Worked on Three Contracts: 1,200 Hours

question 14

Essay

In June, Robust Engineering worked on three contracts: 1,200 hours for Tico Company, 1,100 hours for Navel LLC, and 3,400 hours for Lutron Corp. Robust bills clients at the rate of $150 per hour; labor cost for its engineering staff is $45 per hour. The total number of hours worked in June was 6,000 (any untraced hours are considered overhead), and non-labor overhead costs were $325,000. Overhead is applied to clients at $55 per labor-hour. In addition, Robust had $243,000 in marketing and administrative costs. All transactions are on account. All services were billed.
Required:
a. Determine the cost of each of the three jobs.
b. What is the amount of over- or underapplied overhead?
c. How much operating profit did Robust make in June? Assume the over- or underapplied overhead is not closed out each month.

---

Definitions:

Positive

A characteristic or attribute that denotes optimism, constructiveness, or a beneficial nature in a situation or in an individual’s demeanor.

Culture Adaptation

The process of adjusting and adapting to a culture different from one's own, often involving learning new behaviors, norms, and values.

Disintegration

The process of breaking down or being broken down into smaller parts, losing cohesion or unity.

Nervousness

A feeling of anxiety or apprehension often experienced in anticipation of a specific event or situation.