A job order cost card for Hal\'s Computer Services appears Below. Complete the m

Question

A job order cost card for Hal's Computer Services appears Below. Complete the missing information. The profit factor in the organization's cost-plus contract is 30 percent of total cost.

JOB ORDER COST CARD
HAL'S COMPUTER SERVICES

Customer: James Lowe
Job order no.: 8-324
Contract type: Cost-plus
Type of service: Software installation and Internet interfacing
Date of completion: October 6, 2011


COSTS CHARGED TO JOB TOTAL COST
Software installation services
Installation labor $300
Service overhead (? % of installation labor costs) ?
Total $450
Internet services
Internet labor $200
Service overhead (20% of Internet labor costs) 40
Total $ ?

COST SUMMARY TO DATE TOTAL COST
Software installation services $ ?
Internet services ?
Total $ ?
Profit margin (30% of total cost) ?
Contract revenue $ ?

Explanation / Answer

Particulars Software Internet Total $ $ $ Installation labor 300 200 500 Service overheads 50% of labor for software 150 40 190 20% of labor for internet Total cost 450 240 690 Profit margin is 30% on total cost Let be the cost 100 then the profit is 30% on cost 690×130/100 $897 Contract revenue 897 Contract total cost 690 Profit 207

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