Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Chapter 7, Problem 10P
Determine the estimated cost of the work performed each week given the tasks—with their associated costs and schedules—shown in Table 7-3. When a task spans more than one week, the costs should be divided equally among the weeks.
Table 7-3 Data for Problem 10
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Students have asked these similar questions
roduction reports for the third quarter show the following data:
Month
Machine hours
Direct labour hours
Direct materials cost (£)
Floor surface
(square meters)
Actual Overhead (£)
July
10,000
44,000
25,000
150
31,200
August
15,000
37,800
21,750
170
47,000
September
13,400
59,500
32,000
210
40,100
Which variable would be the most likely basis for allocating overhead?
a.
Machine hours
b.
Labour hours
c.
Floor surface
d.
Direct materials cost
Consider the output and labor hour figures shown in the following table. Calculate the labor productivity for each week, as well as the average labor productivity for all six weeks.
1. Determine the total estimated overhead cost for each of the producing departments after allocating the cost of the service department.
A. Using employee headcount as the allocation base.
B. Using occupied space as the allocation base.
C. Using productive capacity as the allocation base.
D. Using the 3-year average use as the allocation base.
Chapter 7 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 7 - What are the key steps in the monitoring and...Ch. 7 - What does it indicate when a superintendent has to...Ch. 7 - What is the best way to control labor costs? What...Ch. 7 - Why are equipment costs for company-owned...Ch. 7 - What is an internai change order and how is it...Ch. 7 - Why is it important to have a realistic budget for...Ch. 7 - What are some of the problems with using the CPI?Ch. 7 - Prob. 8DQCh. 7 - During the design phase, what are the steps for...Ch. 7 - Determine the estimated cost of the work performed...
Ch. 7 - Determine the estimated cost of the work performed...Ch. 7 - A project consists of three tasks. Task A is...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - The ACWP at the end of the second week for the...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - Determine the total estimated cost at completion...Ch. 7 - A project consists of six tasks. Task A is...Ch. 7 - Prob. 18P
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- Please use the information from this problem for these calculations. After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: It estimates there will be five orders in the next year, and those jobs will involve: What is the total cost of the jobs?arrow_forwardRefer to the data in Exercise 7.18. When the capacity of the HR Department was originally established, the normal usage expected for each department was 20,000 direct labor hours. This usage is also the amount of activity planned for the two departments in Year 1 and Year 2. Required: 1. Allocate the costs of the HR Department using the direct method and assuming that the purpose is product costing. 2. Allocate the costs of the HR Department using the direct method and assuming that the purpose is to evaluate performance.arrow_forwardCost Flows Consider the following independent jobs. Overhead is applied in Department 1 at the rate of 6 per direct labor hour. Overhead is applied in Department 2 at the rate of 8 per machine hour. Direct labor wages average 10 per hour in each department. Required: Fill in the missing data for each job.arrow_forward
- Direct labor hours are estimated as 2,000 in Quarter 1; 2,100 in Quarter 2; 1,900 in Quarter 3; and 2,300 in Quarter 4. Prepare a manufacturing overhead budget using the information provided.arrow_forwardA. What are the costs of Jobs SY-400 and SY-403 at the beginning of the month and when completed? B. What is the cost of Job SY-404 at the end of the month? C. How much was under or oversupplied service overhead for the month?arrow_forwardThe following data was recorded last period for production department that under the management of Mr. Cobblepot. Budgeted labour hours = 2,700 hoursNumber of units of product X manufactured = 350 unitsNumber of units of product Y manufactured = 400 unitsStandard hours to produce one unit of X = 3 hoursStandard hours to produce one unit of Y = 4 hoursActual labour hours worked = 3,110 hours In order to measure the productivity of a labour , calculate the activity ratio ? Show solutionarrow_forward
- Mia Company uses activity-based costing and reports the following for this year. Activity Budgeted Cost Activity Cost Driver Budgeted Activity Usage Cutting $ 33,600 Machine hours (MH) 4,800 machine hours Assembly 88,000 Direct labor hours (DLH) 8,800 direct labor hours Total $ 121,600 (a) Compute an activity rate for each activity using activity-based costing.(b) Allocate overhead costs to a job that uses 34 machine hours and 29 direct labor hours.arrow_forwardJob 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 $ 72,000 Number of moves 3,000 Engineering 165,000 Number of change orders 10,000 Other overhead 280,000 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 Beginning balance $20,300 $19,800 $2,300 $0 Direct materials $6,500 $8,900 $12,700 $9,800 Direct labor cost $18,000 $20,000 $32,000 $2,400 Job 13-43 Job 13-44 Job 13-45 Job 13-46 Number of moves 44 52 29 5 Number of change orders 30 40 20 20 Direct labor hours 900 1,000 1,600 120 By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still in process.…arrow_forward⦁ Use ABC to compute overhead cost assigned to an order.KCC Production Corporation uses an activity-based costing system and provided the following budget data: The distribution of resource consumption across activities is as follows: During the year, KCC completed one order from a new customer for 1,000 units, and the related data are as follows: direct labor hours= 0.5 /unit direct materials= $2.00/unit direct labor= $5.00/hour machine hour =1 machine hour per unit Requirements1. Compute the activity rates for each of the activity cost pools.2. Compute the overhead cost assigned to the order from the new customer.arrow_forward
- In process costing, costs are accounted for by a. year. b. process. c. job. d. batcharrow_forwardForsythe, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the year and their allocation bases are as follows: 1(Click the icon to view the budgeted costs and activity bases.) Read the requirements2. Requirement 1. Compute the predetermined overhead allocation rate for each activity. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Round your answers to the nearest cent.) Predetermined OH (1) ÷ (2) = allocation rate Materials handling ÷ = Machine setup ÷ = Insertion of parts ÷ =…arrow_forwardData concerning three of Kilmon Corporation’s activity cost pools appear below: Activity Cost Pools Estimated Overhead Cost Expected Activity Assembling products $ 65,540 4,520 assembly hours Designing products $ 578,112 3,011 product design hours Setting up batches $ 41,820 820 batch set-ups Required: Compute the activity rates for each of the three cost pools. (Round your answers to 2 decimal places.) Activities Activity rate Assembly products Designing products Setting up batchesarrow_forward
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