Designer Hours- 120 (Harris) 100 (Chan) 90 (James)
Direct Materials Cost- $4500 (Harris) $3700 (Chan) $1400 (James)
Direct Labor Cost- $9600 (Harris) $8000 (Chan) $7200 (James) Actual overhead costs were $30000 for April. Overhead costs are applied to projects on the basis of designer hours because most of the overhead is related to the
cost of the garden design studio. The predetermined overhead rate is $90 per designer hour. The Harris and Chan projects were completed in April; the James project
was not completed by the end of the month. 1. Compute the amount of overhead cost that would have been charged to each project during April.
2. Prepare a journal entry showing the completion of the Harris and Chan projects and the transfer of costs to the Completed Projects (i.e. Finished Goods)
3. What is the balance in the Work in Progress account at the end of the month
4. What is the balance in the Overhead account at the end of the month? What is the balance called?