Job costing—service industry. Michael Scott books tours for new bands and arranges to print T-shirts
Job costing—service industry. Michael Scott books tours for new bands and arranges to print T-shirts and produce demo CDs to sell on the tour. Scott’s agency uses a normal costing system with two direct cost pools, labor and materials, and one indirect cost pool, general overhead. General overhead is allocated to each tour at 150% of labor cost. The following information relates to the agency for June 2009.