I am stuck on a homework problem: A company employs two appraisers. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salary and billable hours of the two appraisers are estimated to be as follows.... DEBBIES ANNUAL SALARY=$165,880 DEBBIES BILLABLE HOURS=2,200 TARAS ANNUAL SALARY=$86,260 TARAS BILLABLE HOURS=1900 The accountant for the company is computing the hourly rate that should be used to charge clients for Debbie's and Tara's services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 30% markup. 1.) COMPUTE THE PREDETERMINED OVERHEAD RATE 2.) COMPUTE THE HOURLY BILLING RATE FOR DEBBIE AND TARA
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
I am stuck on a homework problem:
A company employs two appraisers. The company expects to incur total overhead costs of $378,210 during the year and applies overhead based on annual salary costs. The salary and billable hours of the two appraisers are estimated to be as follows....
DEBBIES ANNUAL SALARY=$165,880
DEBBIES BILLABLE HOURS=2,200
TARAS ANNUAL SALARY=$86,260
TARAS BILLABLE HOURS=1900
The accountant for the company is computing the hourly rate that should be used to charge clients for Debbie's and Tara's services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 30% markup.
1.) COMPUTE THE PREDETERMINED OVERHEAD RATE
2.) COMPUTE THE HOURLY BILLING RATE FOR DEBBIE AND TARA
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