John Ting, Event Manager of Vision Music, schedules concerts…
John Ting, Event Manager of Vision Music, schedules concerts for local bands and creates CDs and T-shirts to sell at each concert. Vision Music uses a normal-costing system with two direct-cost pools, labour and materials, and one indirect-cost pool, general overhead. General overhead is allocated to each concert based on 120% of the direct labour cost. The actual overhead equalled the allocated overhead as of March 20×7. The actual overhead in April was $19,800. All costs incurred during the planning stage for a concert and during the concert are gathered in a balance sheet account called ‘Concert in Progress (CIP)’.
When a concert is completed, the costs are transferred to an income statement account called ‘Cost of Completed Concerts (CCC)’. The following is cost information for April 20×7
