September 2023 Morris Assoc owned by Cindy Morris provides accounting services to clients The

2024 Association with cost object Assignment Help

Morris Assoc owned by Cindy Morris provides accounting services to clients The 2023

Morris & Assoc., owned by Cindy Morris, provides accounting services to clients. The firm has two accountants (Jo Perkins who performs basic accounting services and Steve Tompkin who performs tax services) and one office assistant. The assistant is paid on an hourly basis for the actual hours worked. One client the firm served during April was Vic Kennedy. During April 2010, the following labor time was incurred. Classify the labor time as direct or indirect based on whether the cost object is (1) Kennedy’s services, (2) tax services provided, or (3) the accounting fi rm. a. Four hours of Perkins’s time in preparing Kennedy’s financial statements b. Six hours of the assistant’s time in copying Kennedy’s tax materials c. Three hours of Morris’s time playing golf with Kennedy d. Eight hours of continuing education paid for by the firm for Tompkin to attend a tax update seminar e. One hour of the assistant’s time spent at lunch on the day that Kennedy’s tax return was prepared f. Two hours of Perkins’s time spent with Kennedy and his banker discussing Kennedy’s financial statements g. One-half hour of Tompkin’s time spent talking to an IRS agent about a deduction taken on Kennedy’s tax return h. Forty hours of janitorial wages i. Seven hours of Tompkin’s time preparing Kennedy’s tax return

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