Bhavik's Accounting Services Uses Job Costing and Applies Overhead Using

question 11

Multiple Choice

$\begin{array}{lccc}&\text { Professional} & \text { Other Direct } & \text {Professional }\\&\text { Labour Cost } & \text { Costs } & \text { Labour Hours }\\\text { Client } 57 & \$ 2,000 & \$ 800 & 20 \\\text { Client } 58 & 1,000 & 200 & 10 \\\text { Client 59 } & 5,000 & 600 & 50\end{array}$ Bhavik's Accounting Services uses job costing and applies overhead using a normal costing system using professional labour hours as the allocation base. This period's estimated overhead cost is $400,000, estimated professional labour cost is $800,000 and estimated direct labour hours are 8,000. This period actual overhead cost was $426,400, actual direct labour cost was $820,000, and actual direct labour hours were 8,200.
What is the total cost for Client 58?

• A) $1,300
• B) $1,200
• C) $1,720
• D) $1,700

---

Definitions:

Strip Mall Rent

The rental cost associated with leasing commercial spaces within a strip mall, a type of shopping center typically characterized by a linear arrangement of stores.

Monthly Rent

The amount of money paid on a monthly basis for the use or occupancy of property, such as an apartment or commercial space.

Sample

This refers to a selection of individuals from a broader population aimed at conducting surveys, observations, or interviews to derive statistical insights about the whole group.

Measures of Central Location

Statistical measures that indicate the center of a dataset, including the mean, median, and mode.