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Unformatted text preview: professional labor cost during its audit of Plano Molding Company, which was billed an audit fee of $260,000. Under traditional costing, using 200% as the rate for applying overhead to the job, Check and Doublecheck would compute applied overhead and operating income related to the Plano Molding Company audit as shown in Illustration 17-15 . 17-15 Overhead applied under traditional costing system This example, under traditional costing, uses only one direct cost item and one overhead application rate....
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- Fall '11
- Accounting, TRADITIONAL COSTING EXAMPLE, Doublecheck