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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 1EA: Steeler Towel Company estimates its overhead to be $250,000. It expects to have 100,000 direct labor...

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ion list Requirements 2. 3. 1. Compute Pelican Design's direct labor rate and its predetermined overhead allocation rate for 2024. K- Compute the total cost of each job. If Jackson wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? 4. Why does Pelican Design assign costs to jobs? estion 6 estion 7 Pelican Design, Inc. is a Web site design and consulting firm. The firm uses a job order costing system in which each client is a different job. Pelican Design assigns direct labor, licensing costs, and travel costs directly to each job. It allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. Print Done First, enter the direct costs for each job. Then Pelican Desig Estimated Cost of Delicious Treats a Data table Direct labor hours (professionals) Direct labor costs (professionals) Support staff salaries Computer leases. Office supplies Office rent Print At…
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
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Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs and allocates $18 of overhead for each employee hour worked. Direct materials are assigned to each job according to actual cost. If Job M-47 used $330 of direct materials and took 20 direct labor hours of labor to complete, what is the total cost that should be assigned to the job? Multiple Choice $570 $600. Se90 $930
B441A Implementation and analysis of departmental rates (Learning Objective 1) Hughes Products manufactures its products in two separate departments: Machining and Assembly. Total manufacturing overhead costs for the year are budgeted at $1,056,000. Of this amount, the Machining Department incurs $600,000 (primarily for machine opera- tion and depreciation), while the Assembly Department incurs $456,000. The company estimates that it will incur 4,000 machine hours (all in the Machining Department) and 9,600 direct labor hours (1,600 in the Machining Department and 8,000 in the Assembly Department) during the year. Hughes Products currently uses a plantwide overhead rate based on direct labor hours to allocate overhead. However, the company is considering refining its overhead al- location system by using departmental overhead rates. The Machining Department would allocate its overhead using machine hours (MH), but the Assembly Department would al- locate its overhead using direct labor…
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2 Cierra, Inc. manufactures computer chips. Currently, the costs per unit are as follows: Direct materials $1.00 Direct labor 10.00 Variable manufacturing overhead 5.00 Fixed manufacturing overhead 8.00 Total $24.00 Chips Corp., has contacted Cierra with an offer to sell to Cierra 10,000 of the chips for $22.00 per chip. If Cierra accepts the proposal, $50,000 of the fixed overhead will be eliminated. Should Cierra make or buy the chips? Justify your answer with calculations.
#3 Job 910 was recently completed. The following data have been recorded on its job cost sheet: Direct materials. Direct labor-hours Direct labor wage rate Machine-hours Multiple Choice O $3.373 The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be: $5,207 $2,450 $6,047 S 71 labor-hours. 13 per labor-hour 131 machine-hours
eBook Job Order Cost Accounting Entries for a Service Business Media Connect Inc. provides advertising services for clients across the nation. Media Connect is presently working on four projects, each for a different client. Media Connect 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 55% of media purchases. On April 1, the four advertising projects had the following accumulated costs: April 1 Balances First Bank $56,000 Reliable Airlines 16,800 Motel 26 39,200 Blue Mountain Beverages 24,100 During April, Media Connect incurred the following direct labor and media purchase costs related to preparing advertising for each of the four accounts: Direct Labor Media Purchases…
Chapter 6: A Closer Look on Cost Accounting The company makes 2,350 units of product X a year, requiring a total os 3.300 machine hours, 250 orders and 200 inspection hours per year. The product's direct material cost is P201.50 and its direct labor cost in P211.11 per unit. The product sells for P590 per unit. According to the activity-based costing system, the gross margin for product X is? 423,087.50 b. 350,435.50 c. 416,890 d. None of the choice a. 56. The following information is available for Mary Corp. Activity Pool Setups Quality Inspections Assembly (direct labor hour) What is the activity rate for setups? Activity Base 50,000 120,000 400,000 Budgeted Amount 300,000 600,000 2,000,000 a. P5.09 c. РО.75 d. P58.00 b. Рб.00 The activity rate for quality inspection is: с. Рб.00 d. P5.09 a. P5.29 b. P5.00