Joleen Harmon,CPA,has Two Clients and Uses a Job Order Cost

question 19

Essay

Joleen Harmon,CPA,has two clients and uses a job order cost system.Client A requires 20 hours of partner time and 100 hours of staff time.Client B will use 12 hours of partner time and 75 hours of staff time.Partners are paid $85 an hour and bill support time at 50% of their hourly rate.Staff are paid $25 an hour and bill support time at $20 per billable hour.What is the total charge to each of these clients if profit is added at 20% over cost?

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Definitions:

Virtual Teams

Groups of individuals who work together from different geographical locations, connected by technology such as email, video conferencing, and collaborative software.

Information Sharing

The practice of distributing or exchanging information within an organization or between entities to facilitate decision-making, collaboration, and problem-solving.

Shared Mental Models

A psychological representation of knowledge that is held in common by members of a team about their operational environment, enabling synchronized and coordinated action.

Cross-functional Teams

Groups composed of members from different functional areas of an organization, working together towards a common goal.