19)A local firm employs 20 full-time professionals. The budgeted annual compensation per employee is $81,000. The budgeted average chargeable time is 500 hours per client annually. All professional labor costs are included in a single direct-cost category and are allocated to jobs on a per-hour basis. Other costs are included in a single indirect-cost pool, allocated according to professional labor-hours. Budgeted indirect costs for the year are $787,500. If the firm expects to have 80 clients during the coming year, what is the direct labor cost rate per hour: 20)What is the indirect-cost allocation rate for the firm (this is conceptually similar to the O/H allocation rate for a manufacturer)? W 111kkk

19)A local firm employs 20 full-time professionals. The budgeted annual compensation per employee is $81,000. The budgeted average chargeable time is 500 hours per client annually. All professional labor costs are included in a single direct-cost category and are allocated to jobs on a per-hour basis. Other costs are included in a single indirect-cost pool, allocated according to professional labor-hours. Budgeted indirect costs for the year are $787,500. If the firm expects to have 80 clients during the coming year, what is the direct labor cost rate per hour: 20)What is the indirect-cost allocation rate for the firm (this is conceptually similar to the O/H allocation rate for a manufacturer)? W 111kkk

Name: epsofanyedIS19)A local firm employs 20 full-time professionals. The b
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Description: epsofanyedIS19)A local firm employs 20 full-time professionals. The budgeted annual compensation per employee is$81,000. The budgeted average chargeable time is 500 hours per client annually. All professional laborcosts are included in a single dire

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Davis Corporation budgeted factory overhead at $250,000 for the period for the Assembly Department based on a budgeted volume of 100,000 direct labor hours. At the end of the period, the factory overhead control account for the Assembly Department had a balance of $252,000. The actual (and allowed) direct labor hours were 103,000. What was the over- or underapplied factory overhead for the period?
Winken, Blinken, and Nod is a law firm specializing in real estate litigation. In addition to the three partners, the firm employs nine associates who work directly with clients. The average budgeted compensation for the twelve professionals is $299,040. Each lawyer is budgeted at 1,680 billable hours per year. All professional labor costs are included in a single direct cost pool and are traced to jobs on a per-hour basis. All non-professional labor costs are included in a single overhead cost pool and are allocated to jobs using professional labor hours as the allocation base. Budgeted overhead costs total $2,016,000. The firm is considering bidding on some work with a local university. The job is expected to require 190 hours of professional labor. Required: a. Compute the budgeted direct cost rate per hour of professional labor. b. Compute the budgeted (that is, predetermined) overhead cost rate per hour of professional labor. c. Compute the budgeted cost for the university job.…
Pinnacle Corp. budgeted $226,430 of overhead cost for the current year. Actual overhead costs for the year were $213,870. Pinnacle's plantwide allocation base, machine hours, was budgeted at 51,960 hours. Actual machine hours were 53,550. A total of 102,150 units was budgeted to be produced and 98,000 units were actually produced. Pinnacle's plantwide factory overhead rate for the current year is: Oa. $4.12 per machine hour Ob. $4.36 per machine hour Oc. $2.22 per machine hour Od. $2.09 per machine hour
A company's budgeted varlable manufacturing overhead cost Is $1.05 per machine-hour and Its budgeted fixed manufacturing overhead Is $27,094 per month. The following information is avallable for a recent month: a. The denominator activity of 8,740 machine-hours is used to compute the predetermined overhead rate. b. At a denominator activity of 8.740 machine-hours, the company should produce 3,800 unlts of product. C. The company's actual operating results were: Number of units produced Actual machine-hours Actual variable manufacturing overhead cost Actual fixed manufacturing overhead cost 4,220 10,050 $12,060.00 $26,400.00 Required: 1. Compute the predetermined overhead rate and break It down Into varlable and fixed cost elements. (Round your answers to 2 declmal places.) 2. Compute the standard hours allowed for the actual production. 3. Compute the varlable overhead rate and efficlency varlances and the fixed overhead budget and volume varlances. (Indicate the effect of each…
Assume the following five facts: • budgeted fixed manufacturing overhead for the coming period of $308,750 • budgeted variable manufacturing overhead of $4.00 per direct labor hour, • actual direct labor hours worked of 64,000 hours, and • budgeted direct labor-hours to be worked in the coming period of 65,000 hours. The company allocates MOH based on direct-labor hours. The predetermined plantwide overhead rate for the period is closest to:A. $8.50 per dlh B. $8.82 per dlh C. $$8.75 per dlh D. $8.63 per dlh
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Hanung Corp has two service departments, Maintenance and Personnel. Maintenance Department costs of $370,000 are allocated on the basis of budgeted maintenance-hours. Personnel Department costs of $170,000 are allocated based on the number of employees. The costs of operating departments A and B are $216,000 and $324,000, respectively. Data on budgeted maintenance - hours and number of employees are as follows: Budgeted costs Budgeted maintenance - hours Number of employees Support Departments Maintenance Personnel Department Production Departments Department $370,000 ΝΑ A $170,000 $216,000 $324,000 800 1,270 630 B 65 ΝΑ 280 700 Using the direct method, what amount of Maintenance Department costs will be allocated to Department B? (Do not round any intermediary calculations.)
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