QUESTION 17 Dewey, Cheatum & Howe, LLP, is a legal firm. The lawyers are paid $150 per hour and overhead is allocated at a rate of $100 per direct labor hour. A Salt & Buttery. Inc., is a client that was charged for 18 direct labor hours and $1,000 for materials used. Calculate the total cost of the client. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All

QUESTION 17 Dewey, Cheatum & Howe, LLP, is a legal firm. The lawyers are paid $150 per hour and overhead is allocated at a rate of $100 per direct labor hour. A Salt & Buttery. Inc., is a client that was charged for 18 direct labor hours and $1,000 for materials used. Calculate the total cost of the client. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All

Name: 7escQUESTION 17Dewey, Cheatum & Howe, LLP, is a legal firm. The lawye
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Description: 7escQUESTION 17Dewey, Cheatum & Howe, LLP, is a legal firm. The lawyers are paid $150 per hour and overhead is allocated at a rate of $100 per direct labor hour. A Salt & Buttery,Inc., is a client that was charged for 18 direct labor hours and $1,00

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 15.9EX: Classifying costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and...

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Factory overhead rate Fabricator Inc., a specialized equipment manufacturer, uses a job order cost system. The overhead is allocated to jobs on the basis of direct labor hours. The overhead rate is now $3,000 per direct labor hour. The design engineer thinks that this is illogical. The design engineer has stated the following: Our accounting system doesn't make any sense to me. It tells me that every labor hour carries an additional burden of $3,000. This means that while direct labor makes up only 5% of our total product cost, it drives all our costs. In addition, these rates give my design engineers incentives to "design out" direct labor by using machine technology. Yet, over the past years as we have had less and less direct labor, the overhead rate keeps going up and up. I won't be surprised if next year the rate is $4,000 per direct labor hour. I'm also concerned because small errors in our estimates of the direct labor content can have a large impact on our estimated costs. Just a 30~minute error in our estimate of assembly time is worth $ 1,500. Small mistakes in our direct labor time estimates really swing our bids around. I think this puts us at a disadvantage when we are going after business. What do you think is a possible solution?
Factory overhead rate Fabricator Inc., a specialized equipment manufacturer, uses a job order cost system. The overhead is allocated to jobs on the basis of direct labor hours. The overhead rate is now $3,000 per direct labor hour. The design engineer thinks that this is illogical. The design engineer has stated the following: Our accounting system doesn't make any sense to me. It tells me that every labor hour carries an additional burden of $3,000. This means that while direct labor makes up only 5% of our total product cost, it drives all our costs. In addition, these rates give my design engineers incentives to "design out" direct labor by using machine technology. Yet, over the past years as we have had less and less direct labor, the overhead rate keeps going up and up. I won't be surprised if next year the rate is $4,000 per direct labor hour. I'm also concerned because small errors in our estimates of the direct labor content can have a large impact on our estimated costs. Just a 30~minute error in our estimate of assembly time is worth $ 1,500. Small mistakes in our direct labor time estimates really swing our bids around. I think this puts us at a disadvantage when we are going after business. What did the engineer mean about the large overhead rate being a disadvantage when plating bids and seeking new business?
Classifying costs The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used in production (including 56,200 of indirect materials) 607,500 Direct labor (including 84,400 maintenance salaries) 62,500 Factory overhead: Supervisor salariesplant 517,500 Heat, light, and power-plant 140,650 Sales salaries 348,750 Promotional expenses 315,000 Insurance and property taxesplant 151,900 Insurance and property taxescorporate offices 219,400 Depreciationplant and equipment 123,750 Depreciationcorporate offices 90,000 3,076,950
28.This is Cost Accounting. Explain briefly and answer. Ryca, a production employee is paid P180 per hour for a regular work of 40 hours. During the week ended March 23, Ryca worked 50 hours and earned time and a half for overtime hours. What is the amount that should be charged to work in process account, if the overtime premium is charged to manufacturing overhead? Group of answer choices 10,800 9,900 900 9,000 10,900
17. This is Cost Accounting. Explain briefly and answer. The following direct labor information pertains to the manufacture of Part J35:Number of hours required to make a part 2.5 DLHNumber of Direct workers 75Number of total productive hours per week 3000Weekly wages per worker P1,000 Laborers’ fringe benefits treated as direct labor costs 25% of wagesWhat is the standard direct labor cost per unit of Part J35? 62,500 78,125 41,670 84,125 74,350
7. Required: 1. Milano Company’s predetermined overhead rate for manufacturing overhead is $20 per direct labour-hour. The wage rate is $25 per hour. If the budgeted direct labour cost was $400,000, what was the budgeted manufacturing overhead? 2. Zion wants to compute the total cost for preparing a corporate tax return for his client. His labour is the only direct cost at $69 per hour. He estimates monthly overhead costs at $8,100 for 162 direct labour-hours. If the tax return requires 14 hours to prepare, what will be the total direct cost, indirect cost, and job cost, respectively?
Question 5 Part II The following information is provided for Advent Corporation:Direct Materials: The per-unit standards are 2 pounds at $5 per pound. Last month, 11,200 pounds ofdirect materials that actually cost $53,200 were used to produce 6,000 units ofproduct.Direct Labour: The per-unit standards are 0.5 direct labor hours at $15 per hour. In producing 6,000units, the actual direct labor cost was $46,500 for 3,000 direct labor hours worked.Required:a. Compute the Materials Price Variance b. Compute the Materials Quantity Variance c. Compute the Labour Rate Variance d. Compute the Labour Quantity Variance
Question 6: Your company currently produces a range of three products, D, E, and F to which the following details relate for Period 2. D E F Production (units) 1,500 2,500 14,000 Material cost per unit Br. 18 Br. 10 Br. 20 Labor hours per unit 1 3 2 Machine hours per unit 3 2 6 Labor costs are Br. 8 per hour and production overheads are currently absorbed in the conventional system by reference to machine hours. Total production overheads for Period 2 have been analyzed as follows: Set-up cost 327,250 Handling cost 187,000 Machine cost 140,250 Inspection cost 280,500 935,000 Calculate the cost per unit for each product using conventional The introduction of an ABC is being considered and to that end the following volume…
QUESTION 45 Reyes Corporation applies overhead based upon machine-hours using the predetermined overhead rate of $10 per machine hour. Budgeted factory overhead was $240,000, and budgeted machine-hours were 24,000 machine hours. Actual overhead cost was $270,000, and actual machine-hours were 25,000 machine-hours. By how much was the overhead over- or under-applied? A. $20,000 under-applied B. $30,000 under-applied C. $30,000 over-applied D. $10,000 over-applied E. $10,000 over-applied
10. Ramona Diaz Ltd. produces two products, P1 and P2, at its two departments: Machining and Assembly, as shown in the table below. The accountant tries to allocate overhead costs to the two products. If the accountant decides to allocate overhead based on labor hours, what is P1’s share of the total overhead costs? $180,000 $200,000 $220,000 $240,000
Exercise 7.2 Orion Corporation has established the following standards for the prime costs of one unit of its chief product, dartboards. Standard Cost Standard Quantity Standard Price or Rate Direct material OMR 36 12 pounds OMR 3 per pound Direct labor 5 2 hour OMR 2.5 per hour Total 41 During June, Orion purchased 12,000 pounds of direct material at a total cost of OMR 35,000. The total wages for June were OMR 23,000, 70 percent of which were for direct labor. Orion manufactured 3,000 units during June, using 34,500 pounds of direct material and 6,500 direct-labor hours. Required: Compute the following variances for June, and indicate whether each is favorable or unfavorable. 1.The direct-material price variance. 2.The direct-material quantity variance. 3.The direct-labor rate variance. 4.The direct-labor efficiency variance
Question No.8 King manufacturing has four categories of overhead. The four categories and expected overhead costs for each category for next year are as follows. Maintenance Rs.70,000 Material Handling 30,000 Set-ups 25,000 Inspection 50,000 Currently, overhead is applied using a predetermined overhead rate based upon budgeted direct labor hours, 50,000 direct labor hour are budgeted for next year? The company has been asked to submit a bid for a proposed job. The plant manager feels that obtaining this job would result in new business in future years. Usually, bids are based upon full manufacturing cost plus 30 percent. Estimates for the proposed job are as follows: Direct material Rs.2,500 Direct labor (750 hours) Rs.3,750 Number of machine hours 300 Number of material moves 8…