Concept explainers
The rates per category of professional labor are as follows:
Category of Professional Labor | Direct Cost per Hour | Indirect Cost per Hour |
Partner | $200 | $120,000 ÷ 2,500 hours = $48 |
Associate | $120 | $ 80,000 ÷ 2,500 hours = $32 |
- 1. Compute the costs of the Steger Enterprises and Bluestone Inc. jobs using Wharton’s further refined system, with multiple direct-cost categories and multiple indirect-cost pools.
Required
- 2. For what decisions might Wharton Associates find it more useful to use this job-costing approach rather than the approaches in Problem 5-31 or 5-32?
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Horngren's Cost Accounting, Student Value Edition (16th Edition)
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