Baird Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Direct labor Home 1 Home 2 Home 3 $ 72,000 106,000 $109,000 141,000 $173,000 188,000 Direct materials Assume Baird needs to allocate two major overhead costs ($53,100 of employee fringe benefits and $39,150 of indirect materials costs) among the three jobs. Required Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. (Round "Allocation rate" to 2 decimal places.) Fringe Benefits: Home Allocation Rate x Weight of Base Allocated Cost %3D 1 2$ %3D 2 %3D 3 %3D Total 2$

Baird Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Direct labor Home 1 Home 2 Home 3 $ 72,000 106,000 $109,000 141,000 $173,000 188,000 Direct materials Assume Baird needs to allocate two major overhead costs ($53,100 of employee fringe benefits and $39,150 of indirect materials costs) among the three jobs. Required Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. (Round "Allocation rate" to 2 decimal places.) Fringe Benefits: Home Allocation Rate x Weight of Base Allocated Cost %3D 1 2$ %3D 2 %3D 3 %3D Total 2$

Name: Indirect Materials:HomeAllocation RateX Weight of BaseAllocated Cost%
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Indirect Materials:HomeAllocation RateX Weight of BaseAllocated Cost%3D12$%3D2X%3DTotal2$The cost components to determine the total cost of each house:Expected CostsHome 1Home 2Home 3TotalDirect labor$Direct materialsFringe benefitsIndirect material

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Your Companey has two service departments – Personnel and Maintenance. The Maintenance Department's costs of $160,000 are allocated on the basis of standard hours used. The Personnel Department's costs of $40,000 are allocated based on the number of employees. The costs of the operating Departments A and B are $80,000 and $120,000, respectively. Data on standard service hours and number of employees are as follows: Standard Service Maintenance Dept. Personnel Dept. Production Depts. A B Hours used - 400 480 320 Number of Employees 20 - 80 240 What is the cost of the Maintenance Department allocated to Department B using the direct method? What is the cost of the…
Carica Company is a manufacturer with two production departments (Machining andAssembly) as well as two support departments (Materials Requisitions and Utility Services).For the last quarter of 2020, Carica’s cost records indicate the following: Required: 1. Compare and explain differences in the support-department costs allocated to eachproduction department. 2. What approaches might be used to decide the sequence in which to allocate supportdepartments when using the step-down method?
Miguel Manufacturing Company uses a predetermined manufacturing overhead rate based on direct labor hours. At the beginning of 2023, they estimated total manufacturing overhead costs at $2,352,000, and they estimated total direct labor hours at 7,000. The administration and selling overheads are to be absorbed in each job cost at 15% of prime cost. Distribution cost should be added to each job according to quotes from outside carriage companies. The company wishes to quote for job # 222. Job stats are as follows: Direct Materials $173,250 Direct Labour Cost $240,000 Direct Labour Hours 500 hours Special Design Cost $8,750 Distribution quote from haulage company $21,700 Units of product produced 400 cartons Compute Miguel’s Manufacturing Company predetermined manufacturing overhead rate for 2023.
Using the most appropriate overhead application based, the appliead factory overhead for the year is _________________
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period: Printing Developing 3,000 2,000 $30,000 Maintenance Personnel Machine-hours 1,000 1,000 Labor-hours 500 500 Department direct costs $13,000 $37,750 $48,400 University Printers estimates that the variable costs in the Personnel Department total $19,000 and in the Maintenance Department variable costs total $8,500. Avoidable fixed costs in the Personnel Department are $6,600. Required: If University Printers outsources the Personnel Department functions, what is the maximum it can pay an outside vendor without increasing total costs? (Do not round intermediate calculations.) Maximum Amount
Hensel Manufacturing separates its manufacturing overhead costs into 2 broad categories: (1) maintenance costs and (2) utility costs. Maintenance costs average $100,000 per month, whereas utility costs average $8,000 per month. Maintenance costs are allocated to 2 activity cost pools: (1) the repair cost pool and (2) the set-up cost pool. Utility costs also are allocated to 2 activity cost pools: (1) the heating and air conditioning cost pool (HVAC) and (2) the machinery cost pool. Maintenance costs are allocated to their unique activity cost pools on the basis of the number of employees associated with each pool. Utility costs are allocated to their unique activity cost pools on the basis of kilowatt-hour (kWh) consumption. Of the company's maintenance employees, 70% engage primarily in repair activities, whereas 30% engage primarily in set-up activities. Approximately 75% of the company's kWh consumption can be traced to HVAC use, whereas 25% of its kWh consumption can be traced to…
Rundle Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials adn labor costs are as follows. Expected Cost Home 1 Home 2 Home 3 Direct Labor $77,000 $100,000 $172,000 Direct Materials 108,000 146,000 198,000 Assume Randle needs to allocate two major overhead costs ($69,800 of employee fringe benefits and $36160 of indirect materials costs) among the three jobs. Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. "Round allocated rate to two decimal places.
The Allianz group provides consulting services to a number of Caribbeancountries in the area of renewable energy. To determine the cost of eachconsulting engagement, The Allianz group uses a job order system. Costsincurred by the group on projects that are not identifiable with specificclients, are charged to jobs via a predetermined overhead rate (15 %).Clients pay the Allianz group within 30 days of the date of the Invoice. TheAllianz group’s standard markup is 20%. In December 2020, The Allianz group completed a project for the St LuciaPower Company (LUCELEC). The following costs were incurred by Allianz incompleting the project for LUCELEC. Consulting Staff $4,500,000, OfficeStaff 300,000, Travel to/from St Lucia 100,000 and Other office costs.100,000. Required1. Compute the amount of the invoice to be presented to LUCELEC.
McBride and Associates employs two professional appraisers, each having a different specialty. Debbie specializes in commercial appraisals and Tara specializes in residential appraisals. The company expects to incur total overhead costs of $394,200 during the year and applies overhead based on annual salary costs. The salaries and billable hours of the two appraisers are estimated to be as follows: Debbie $173,880 2,300 Tara Annual Salary $88,920 1,950 Billable Hours The accountant for McBride and Associates is computing the hourly rate that should be used to charge clients for Debbie and Tara's services. The hourly billing rate should be set to cover the total cost of services (salary plus overhead) plus a 20 percent markup. Required: 1. Compute the predetermined overhead rate. 2. Compute the hourly billing rate for Debbie and Tara.
Your company completed the site work for the South Pointe office complex. The costs are shown in the following table. The site concrete labor and landscaping were done by subcontractors. The demolition and grubbing and grading, and excavation were done by the company's excavation crew. The company's minimum profit and overhead markup is 17%. Determine the profit generated by the project management. Job: 411 South Pointe Site Work Code 2050 2100 2610 Site Conc.-Labor 2620 Site Conc.-Concrete 2700 Landscaping 525 Description Demolition & Grubbing Grading & Excavation 1438 963 438 Job Total Contract Amount 138,000 Billed To Date 128,000 Actual 33,562 20,500 19,200 9,375 37.500 120.137 -Costs- Budget 35,000 19,500 19,200 9.900 37.500 121.100 May 15, 2004 Ovemin -1.438 1.000 0 -$25 0 -963
Burnham Industries incurs the following costs for the month: Direct materials $2,200 Direct labor 3,100 Factory depreciation expense 3,300 Factory utilities expense 850 CEO's salary 4,000 A. What is the prime cost? $fill in the blank 1 B. What is the conversion cost? $fill in the blank 2
Acklin Company has two products: A and B. The annual production and sales of Product A is 600 units and of Product B is 900 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.5 direct labor-hours per unit and Product B requires 0.3 direct labor-hours per unit. The total estimated overhead for next period is $63,322. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows: Activity Cost Pool Est Ovhd Cost Expected Acty - Prod A Expected Acty -Prod B Total Activity 1 $ 18,900 700 200 900 Activity 2 $ 15,631 1,000 100 1,100 General Factory $ 28,791 300 270 570 Total $ 63,322 The overhead cost per…