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Question - Bravo Construction Company uses the percentage-of-completion method of accounting. In 2015, Brovo began work under a contract with a contract price of $1,500,000. Other details follow:
2015
2016
Cost Incurred during the year
$980,000
$1,375,000
Estimated Cost to complete, as of December 31
420,000
0
Billings to date
800,000
1,500,000
Collections to date
250,000
Prepare all required general journal entries for 2015. (Use 12/31/15 as transaction dates.)
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Overhead cost is applied to units based on direct labor hours. For April, total overhead cost was budgeted at $80,000 based on a denominator activity level of 20,000 direct labor hours for the month.
The job used a total of 5,000 direct labor hours costing a total of $60,000. Determine the material price variance for job Y703
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