Exercise 26. Job costs in a service organization. Loomis
and Associates, a CPA firm, uses job costing. During January, the
firm provided audit services for two clients and billed those
clients for the services performed. Springsteen Productions was
billed for 4,000 hours at $100 per hour, and RCI Records was billed
for 2,00 hours at $100 per hour. Direct labor costs were $60 per
hour. Of the 6,400 hours worked in January, 400 hours were not
billable. The firm assigns...