1.
Concept introduction:
The total estimated cost for the job.
2.
Concept introduction:
Job costing: Job costing refers to the method of costing which is based on a particular project where all the costs and revenues are being tracked for every project or job. Here, all the costs like direct material, direct labor, overheads, etc, are separately written down, and then important decisions and assumptions are made.
The price quoted by the company with a markup of 20% above the total cost.
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- CLEAR MY CHOICE A Company uses job order costing and has chosen direct labor hours to allocate its manufacturing overhead. The company estimates that total direct labor hours to be operated next year are 300,000 hours. The estimated variable overhead is $10 per hour and the estimated fixed overhead costs are $500,000. The predetermined overhead rate is: O a. $7 O b. $16.67 O c. $11.67 Od. $1.67 Oe. None of the answers given NEXT PAGE hparrow_forwardHH Electric reports the following information. Direct labor rate Non-materials-related overhead Materials-related overhead Target profit margin (on both conversion and direct materials) a. Compute the time charge per hour of direct labor. b. Compute the materials markup percentage. c. What price should the company quote for a job requiring four direct labor hours and $600 in materials? a. Time charge per hour of direct labor b. Materials markup c. Time and materials price $ 45 per DLH $ 25 per DLH 5% of direct materials cost 20% %arrow_forwardClear my choice Company XYZ uses a job order costing system. During the year, Job XY was started and completed. The total manufacturing cost of this Job was $15,000. The job includes 100 units the company uses a markup percentage of 110% of its total manufacturing cost, then what selling price per unit would it have established for Job XY? Select one: O a. $165 b. $260 O c. $330 O d. $315 O e. None of the answers given Price FS F6 FB FO F3 %23 4. LLarrow_forward
- Using job order costing in a service company Chance Realtors, a real estate consulting firm, specializes in advising companies on potential new plant sites. The company uses a job order costing system with a predetermined overhead allocation rate, computed as a percentage of direct labor costs. At the beginning of 2018, managing partner Andrew Chance prepared the following budget for the year: Maynard Manufacturing, Inc. is inviting several consultants to bid for work. Andrew Chance wants to submit a bid. He estimates that this job will require about 180 direct labor hours. Requirements Compute Chance Realtors’ (a) hourly direct labor cost rate and predetermined overhead allocation rate. Compute the predicted cost of the Maynard Manufacturing job. If Chance wants to earn a profit that equals 25% of the job’s cost, how much should he bid for the Maynard Manufacturing job?arrow_forwardto the balance in Finished Goods? What would happen to the balance of Cost of Goods pay he Job by JU 30? What would happen Sold? Cornerstone Exercise 5.3 Job Costs Using Activity-Based Costing Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information for the year is as follows: Activity Cost Driver Amount of Driver Materials handling Engineering Other overhead $ 72,000 165,000 280,000 Number of moves 3,000 10,000 Number of change orders Direct labor hours 50,000 Heitger worked on four jobs in July. Data are as follows: Job 13-43 Job 13-44 Job 13-45 Job 13-46 $ 2,300 $12,700 $32,000 %24 $9,800 $2,400 (continued) $ Beginning balance Direct materials $20,300 $ 6,500 $19,800 $ 8,900 $20,000 $18,000 Direct labor costarrow_forwardJob Order Cost Accounting for a Service Company I ONLY NEED PART D The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs and allocated indirect costs. The direct costs include the charged time of professional personnel and media purchases (air time and ad space). Overhead is allocated to each project as a percentage of media purchases. The predetermined overhead rate is 60% of media purchases. On August 1, the four advertising projects had the following accumulated costs: August 1 Balances Vault Bank $72,500 Take Off Airlines 21,800 Sleepy Tired Hotels 50,800 Tastee Beverages 31,200 Total $176,300 During August, The Fly Company incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts:…arrow_forward
- Job Alpha requires $4,000 of direct material, $3,600 of direct labour and 120 direct labour hours. Manufacturing overhead is applied at $60 per direct labour hour. What is the cost of Job Alpha? O $4,000 O $7,600 O $14,800 O $16,500arrow_forwardCalculate the selling price of job No. 102 if Material issued to job is OMR 2,500, Material retuned to store is OMR 200, Material transferred from Job No.111 is OMR 300, Labour cost OMR 1,200, direct expenses are OMR 800, indirect labour OMR 1,600 and office overheads are OMR 700. Job is complete and sold to customer at 20% profit on cost. a. OMR 7,560 O b. OMR 7,000 O C. OMR 6,300 O d. OMR 1,260arrow_forwardExercise 2: Job Costing for Pricing Stellar Engineering Ltd makes one-off production equipment for the food processing industry. The following information relates to job AS3005: Department A £6,000 Department B £3,500 250 hours Direct materials Direct labour 300 hours Direct labour rate per hour Production overhead per direct labour hour £4 £12 £9 £6 20% of full production cost 25% of sales price Administration and other overheads Profit Margin Required: Prepare a costing statement for job AS3005 and calculate the selling price.arrow_forward
- Q: Determining job cost, using direct labor cost, direct labor hour,and machine hour methods?a. If the direct labor cost method is used in applying factory overhead and the predetermined rate is 100%, what amount should be charged to Job 2010 for factory overhead? Assume that direct materials used totaled $5,000 and that the direct labor cost totaled $3,200.b. If the direct labor hour method is used in applying factory overhead and the predetermined rate is $10 an hour, what amount should be charged to 2010 for factory overhead? Assume that the direct materials used totaled $5,000, the direct labor cost totaled $3,200, and the number of direct labor hours totaled 250.c. If the machine hour method is used in applying factory overhead and the predetermined rate is $12.50 an hour, what amount should be charged to 2010 for factory overhead? Assume that the direct materials used totaled $5,000, the direct labor cost totaled $3,200, the direct labor hours were 250 hours, and the machine…arrow_forwardMarkup on Cost, Job Pricing Privacy Window and Wall Treatments Company provides draperies, shades, and various window treatments. Privacy works with the customer to design the appropriate window treatment, places the order, and installs the finished product. Direct materials and direct labor costs are easy to trace to the jobs. Privacy's income statement for last year is as follows: Revenues $236,500 Cost of goods sold: Direct materials $120,615 Direct labor 40,205 Overhead 28,380 189,200 Gross profit $47,300 Selling and administrative expenses 28,900 Operating income $18,400 Privacy wants to find a markup on cost of goods sold that will allow them to earn about the same amount of profit on each job as was earned last year. Required: 1. What is the markup on cost of goods sold (COGS) that will maintain the same profit as last year? (Round to the nearest whole percent. Use this amount for future…arrow_forwardMarkup on Cost, Job Pricing Privacy Window and Wall Treatments Company provides draperies, shades, and various window treatments. Privacy works with the customer to design the appropriate window treatment, places the order, and installs the finished product. Direct materials and direct labor costs are easy to trace to the jobs. Privacy's income statement for last year is as follows: Revenues $235,500 Cost of goods sold: Direct materials $120,105 Direct labor 40,035 Overhead 28,260 188,400 Gross profit $47,100 Selling and administrative expenses 26,300 Operating income $20,800 Privacy wants to find a markup on cost of goods sold that will allow them to earn about the same amount of profit on each job as was earned last year. Required: 1. What is the markup on cost of goods sold (COGS) that will maintain the same profit as last year? (Round to the nearest whole percent. Use this amount for future…arrow_forward
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